U.S. Economic Growth Unexpectedly Slows To 1.5% In Q2
(RTTNews) - U.S. economic growth unexpectedly slowed in the second quarter of 2026, according to a report released by the Commerce Department on Thursday.
The report said real gross domestic product jumped by 1.5 percent in the second quarter after surging by 2.1 percent in the first quarter. Economists had expected GDP to shoot up by 2.3 percent.
The Commerce Department said the unexpected slowdown in GDP growth reflected a downturn in government spending and decelerations in investment and exports that were partly offset by an acceleration in consumer spending.
Imports, which are a subtraction in the calculation of GDP, also increased more in the second quarter than in the first quarter, the report said.
Positive contributors to GDP in the second quarter included increases in consumer spending, investment, and exports, which were partly offset by a decrease in government spending.
"Consumer spending was the single biggest contributor to growth, reflecting a bounceback from severe weather in Q1 and the boost from fiscal stimulus," said Michael Pearce, Chief U.S. Economist at Oxford Economics. "With gas prices elevated, spending is likely to lose some momentum in H2."
The report also said the personal consumption expenditures (PCE) price index soared by 5.1 percent in the second quarter after spiking by 4.6 percent in the first quarter.
Meanwhile, the core PCE price index, which excludes food and energy prices, shot up by 3.4 percent in the second quarter compared with a 4.4 percent surge in the first quarter.
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