US Economy Expands at Sluggish Pace Amid High Inflation

The US economy expanded at a sluggish 1.5% pace from April to June, with consumer spending being the primary driver of growth.

This comes in below economists' expectations, which had predicted a 2.1% increase in GDP for the quarter.

Despite the slow growth rate, business investment excluding housing rose at an 8.4% pace, driven by a surge in investment in artificial intelligence.

The Commerce Department's personal consumption expenditures price index, which is favored by the Federal Reserve, rose 3.7% last month from June 2025, down from a 4.1% year-over-year increase in May.