U.S. Economy Grows 1.5% in Second Quarter, Missing Expectations

The U.S. economy expanded at a slower pace in the second quarter of 2026, as growth in consumer spending, investment and exports was partly offset by weaker government spending, according to the advance estimate released by the U.S. Bureau of Economic Analysis (BEA).

Gross domestic product (GDP) increased at an annualized rate of 1.5% during the April-to-June period, below the 2.1% growth recorded in the first quarter and under market expectations of 2.1%.

Consumer spending remained the primary driver of economic activity during the quarter, while business investment and exports also contributed positively to growth.

These gains were partially offset by a decline in government spending. Imports also increased during the quarter, which weighed on the calculation of GDP.

Compared with the first quarter, the slower pace of economic expansion reflected a contraction in government spending and slower growth in investment and exports, although consumer spending accelerated.

The increase in imports was also larger than in the previous quarter, contributing to the moderation in overall economic growth.

The advance GDP estimate provides the first official snapshot of U.S. economic performance in the second quarter and may be revised as additional data become available.

Source: U.S. Bureau of Economic Analysis (BEA).