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[BUSINESS] · United States · 18 sources

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US economy grows at 1.5% in second quarter

The United States economy grew at an annual rate of 1.5% in the second quarter of 2026, according to the second estimate from the Bureau of Economic Analysis. This represents a deceleration from the 2.1% growth recorded in the first quarter.

Despite the slower headline growth, consumer spending remained a strong driver, increasing at an annual rate of 3.4%, up from 0.5% in the previous quarter. Business investment, excluding housing, also saw significant growth of 8.5%, largely fueled by an investment boom in artificial intelligence technologies.

The deceleration in GDP was primarily attributed to a 12.5% surge in imports, which are subtracted from the total GDP calculation. These imports included a high volume of computer chips and other products supporting AI infrastructure. Additionally, government spending saw a downturn during this period.

Underlying economic strength remained notable, with real final sales to private domestic purchasers increasing by 4.2%. Inflationary data showed the core Personal Consumption Expenditures (PCE) price index rose by 3.6%.

Entities

Atlanta Fed · Federal Reserve · Franklin Templeton Institute · Scott Bessent · U.S. Bureau of Economic Analysis · U.S. Department of Commerce · United States

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17 days ago