US Economy Expands Slowly Amid Elevated Inflation

The US economy expanded at a sluggish 1.5% pace from April to June, according to the Commerce Department's report on Thursday.

This growth rate is down from 2.1% in the first three months of this year and below economists' expectations.

Rising imports weighed on growth, but consumer spending rose, a positive sign for the economy.

The Federal Reserve's favored measure of inflation, the PCE price index, grew more slowly last month, from 4.1% to 3.7%, though it remains above the central bank's 2% target.