US Economy Hits Sluggish Growth Amid 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 deceleration was largely due to rising imports, which weighed on growth and shaved off 1.5 percentage points from GDP expansion.

However, consumer spending remained resilient, increasing at a 3.2% annual clip, up from 0.5% in the January-March period.

The Commerce Department's personal consumption expenditures (PCE) price index, favored by the Federal Reserve, rose 3.7% last month from June 2025, but core consumer prices remained above the central bank's 2% target for more than five years.