US economy expands at sluggish 1.5% pace in second quarter, but consumer spending stayed strong
Summary
The U.S. economy grew slowly at a rate of 1.5% in the second quarter of 2026. Consumer spending, which is a major part of the economy, increased strongly by 3.4%, but the overall growth was held back by a big rise in imports.Key Facts
- The U.S. economy grew by 1.5% between April and June 2026.
- This growth was slower than the 2.1% seen in the first quarter of 2026.
- Consumer spending rose by 3.4% in the second quarter, up from 0.5% earlier in the year.
- Imports increased by 12.5%, reducing the GDP growth by 1.64 percentage points.
- The import rise was partly due to more shipments of computer chips and other goods for artificial intelligence (AI).
- Business investment grew, helped by the AI industry boom.
- The economy remained steady despite tensions with Iran and higher energy prices.
- The Commerce Department will release a final report on the second quarter’s GDP on September 30, 2026.
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