The Bureau of Economic Analysis (BEA) reported that the US economy grew at an annualized rate of 1.5% in the second quarter of 2026, slowing from 2.1% in the first quarter. The weaker headline growth was largely due to a wider trade deficit, even as underlying domestic demand remained resilient.
Consumer spending accelerated to 3.2%, supported by tax refunds and resilient household spending, while business investment—particularly in AI-related equipment and infrastructure—remained strong. However, high energy prices, persistent inflation, and elevated interest rates continue to pose risks to growth in the second half of the year.
