US Economy Expands Slowly Amid High Inflation

The US economy grew at a sluggish 1.5% pace in the second quarter of this year, according to the Commerce Department's latest report.

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

Consumer spending, which accounts for about 70% of US economic activity, increased at a 3.2% annual clip, up from 0.5% in the January-March period.

The Federal Reserve's favored measure of inflation, the personal consumption expenditures (PCE) price index, rose 3.7% last month from June 2025 but remained above the central bank's 2% target.