Consumer Spending Helps Keep U.S. Economy Growing

U.S. economic growth slowed to a 1.5% annualized rate in the second quarter of 2026, unchanged from the advance estimate and down from 2.1% in the first quarter. Growth was supported by consumer spending, exports, and investment, while government spending declined and imports increased.

Consumer demand was stronger than initially estimated, with real final sales to private domestic purchasers rising 4.2%. However, inflation remained elevated: the PCE price index rose 5.3%, while core PCE increased 3.6%. Real gross domestic income grew 2.2%, suggesting underlying economic activity was somewhat stronger than the headline GDP figure indicates.