US Q2 2026 GDP Grows 1.5% Amid Strong Domestic Demand

The U.S. economy grew at a slower-than-expected pace in the second quarter of 2026, expanding at an annualized rate of 1.5% from April through June, according to an advance estimate released Thursday by the Commerce Department's Bureau of Economic Analysis. The figure fell below the median forecast of 2.0% to 2.1% and marked a deceleration from the first quarter's 2.1% growth rate.

A significant widening of the trade deficit, driven by a surge in imports, was the primary factor dragging down the headline gross domestic product figure. Imports, which subtract from GDP calculations, increased notably, particularly for semiconductors, computer equipment, and other products related to artificial intelligence. This masked underlying strength in domestic demand, as both consumer spending and business investment showed robust growth.

Consumer spending, which accounts for more than two-thirds of economic activity, accelerated sharply to a 3.2% rate, rebounding from a modest 0.5% pace in the first quarter. The strength was broad-based, with households increasing outlays on durable goods like motor vehicles and furnishings, as well as on discretionary services such as recreation, food...