Inflation remaining stubbornly high, U.S. economy grows sluggish 1.5% in 2nd quarter
Summary
The U.S. economy grew slowly at 1.5% from April to June, down from 2.1% earlier in the year. Consumer spending increased, but inflation stayed above the Federal Reserve’s 2% target despite growing more slowly last month.Key Facts
- The U.S. economy expanded by 1.5% in the second quarter of 2026.
- This growth rate is slower than the 2.1% growth in the first quarter of 2026.
- Rising imports slowed down overall economic growth.
- Consumer spending, which makes up about 70% of the economy, rose at a 3.2% annual pace.
- Inflation grew more slowly last month but stayed above the Fed’s 2% target.
- The Federal Reserve watches inflation closely to help guide economic policies.
- A measure excluding government spending and trade showed stronger economic growth of 3.9%.
- Many Americans remain frustrated by high living costs as midterm elections approach.
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