US Economy Slows to 1.5% Growth Rate in Q2 Amid High Inflation

The US economy slowed to a growth rate of 1.5% in Q2, falling short of the 1.8% estimate from economists surveyed by Dow Jones.

Gross domestic product (GDP) is a broad measure of goods and services, and this reading was adjusted for seasonality and inflation.

The Commerce Department reported that personal consumption expenditures price index, the Federal Reserve's primary forecasting gauge, fell 0.1% in June, putting the annual inflation rate at 3.7%.

However, excluding food and energy, core PCE posted a monthly increase of 0.1% and an annual level of 3.3%, slightly above expectations.