US Economy Expands at Sluggish 1.5% Pace in Q2 Amid Ongoing Inflation Concerns

The U.S. economy grew at a sluggish 1.5% pace from April to June, according to the Commerce Department's latest report.

This marks a deceleration from the 2.1% growth rate in the first three months of 2026 and falls below economists' expectations.

The slowdown is attributed to rising imports weighing on growth, but consumer spending continued to rise.

The Federal Reserve's preferred measure of inflation, the PCE price index, rose 3.7% last month from June 2025, down from a 4.1% year-over-year increase in May.