US Economy Slows to 1.5% Growth Amid Inflation Worries

The US economy grew at a sluggish pace of 1.5% from April to June, according to the Commerce Department's latest report. This marks a deceleration from the previous quarter's growth rate of 2.1%. 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.

Rising imports weighed on economic growth during this time, contributing to the slower pace. Despite the slowdown, consumers continued to spend, driven by sustained demand for goods and services. However, inflation remains a concern as the Federal Reserve's preferred measure of inflation grew more slowly last month but remained above its 2% target.

This development comes ahead of the midterm elections, which are now less than 100 days away. Americans are growing increasingly frustrated about the high cost of living, and this news may add to their concerns. The Commerce Department's report highlights the ongoing challenges facing the US economy as it navigates rising inflation and slowing growth.