US Economy Grows at 1.5% in Q2 Amid High Inflation Concerns

The US economy grew at a sluggish 1.5% pace in the second quarter of this year, down from 2.1% in the first three months of 2026.

This decline was largely due to rising imports, which added up to $20 billion and shaved off 1.5 percentage points from GDP growth.

However, consumer spending remained strong, increasing at a 3.2% annual clip, while business investment excluding housing rose at an 8.4% pace.

The Commerce Department also reported that the personal consumption expenditures (PCE) price index, favored by the Federal Reserve, rose 3.7% last month from June 2025, but slowed down from a 4.1% year-over-year increase in May.