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● LIVE Updated 1h ago · 21 sources tracked

U.S. economy slowed in second quarter, but consumers continue to spend

The U.S. economy expanded at a 1.5% rate during the second quarter of 2026, failing to meet expert expectations. While consumer spending and domestic demand remained strong, an increase in imports slowed overall growth. Economic conditions are complicated by core inflation, which hit 3.3% in June. Despite this sluggish pace, the economy continues to grow. Market activity remains volatile globally, with the S&P 500 recently reaching a record high while other international indices, such as the Sensex, have experienced declines.

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What changed

Recent market data shows the S&P 500 hit a record high while Indian indices declined.

Live updates

  1. U.S. Economy Slows to 1.5% Growth in Q2 Amid Robust Spending

    The U.S. economy expanded at a 1.5% rate during the second quarter of 2026, failing to meet expert expectations. While consumer spending and domestic demand remained strong, an increase in imports slowed overall growth. Economic conditions are complicated by core inflation, which hit 3.3% in June. Despite this sluggish pace, the economy continues to grow. Market activity remains volatile globally, with the S&P 500 recently reaching a record high while other international indices, such as the Sensex, have experienced declines.

    Why it matters

    Slower growth combined with stubbornly high inflation creates a difficult environment for monetary policy. The tension between strong consumer demand and rising imports reflects a complex trade balance. These factors influence global market sentiment and interest rate expectations.

    Still unconfirmed

    • The S&P 500 closed at a record high.
    • SpaceX posted a 768 million dollar loss.
    • U.S. Treasury Secretary Scott Bessent's views may lead the Bank of Japan to hike interest rates in September.

    What to watch next

    • Official third quarter GDP data.
    • August core inflation reports.
    • Bank of Japan interest rate decision in September.
    Sources used for this update (4)
    1. ca.finance.yahoo.com — Uber Technologies, Inc. UBER Stock Forecast & Price Target
    2. www.afr.com — ASX to rise, S&P 500 closes at a record high, SpaceX posts $768m loss
    3. kfgo.com — Analysis-Nudge from Bessent firms case for BOJ rate hike in September
    4. www.thehindubusinessline.com — Sensex today | Stock Market Live: Sensex slides over 400 pts, Nifty slips below 24,600; TCS leads gainers; Bajaj Finance falls 4.5%
    confidence 70%

  2. U.S. Economy Grew 1.5% in Second Quarter Amid Robust Consumer Spending

    The U.S. economy grew at a 1.5% rate during the second quarter of 2026, missing expert estimates. While domestic demand and consumer spending remained robust, rising imports weighed on overall growth. Economic conditions remain complex as core inflation for June reached 3.3%, which some sources describe as stubbornly high. The growth pace is characterized as sluggish, though the economy continues to expand.

    Why it matters

    This slowdown occurs during a period of conflict with Iran and high mortgage rates, which have hit their highest level in a year. The data suggests a tension between strong internal consumer activity and external pressures affecting GDP.

    What is confirmed

    • The U.S. economy grew at a 1.5% rate in the second quarter.
    • Consumer spending and domestic demand remained robust during the second quarter.
    • U.S. economic growth missed expert estimates for the second quarter.
    • Rising imports acted as a drag on economic growth in Q2.

    Still unconfirmed

    • Mortgage rates reached their highest level in a year.

    What to watch next

    • Upcoming Federal Reserve decisions on interest rates
    • Future GDP reports to determine if the 1.5% rate is a trend
    • New inflation data to see if core rates decline from 3.3%
    Sources used for this update (17)
    1. Bloomberg.com — US Economic Growth Misses Estimates Despite Robust Consumers
    2. The New York Times — U.S. Economy Grew More Slowly in the Second Quarter
    3. CNBC — U.S. economy slowed to 1.5% growth rate in Q2; June core inflation at 3.3%
    4. WSJ — U.S. Economic Growth Slowed to 1.5% in Second Quarter
    5. AP News — US economy grows at a sluggish 1.5% in second-quarter with inflation remaining stubbornly high
    6. NPR — The economy slowed a bit — but Americans continued to spend
    7. BBC — US economic growth slows to 1.5% in second quarter
    8. Al Jazeera — Why is US GDP growth slowing, and how can it be reversed?
    9. Reuters — Imports hold back US economic growth in Q2, but domestic demand robust
    10. NPR — The U.S. economy is still growing, but at a slower pace
    11. CBS News — U.S. economy slowed in second quarter, but consumers continue to spend
    12. Richmond Times-Dispatch — Virginia Gov. Spanberger restores rights to 66,000
    confidence 90%

  3. U.S. Economy Grew 1.5% in Second Quarter Amid Robust Consumer Spending

    The U.S. economy grew at a 1.5% rate during the second quarter of 2026, falling short of analyst estimates. While overall growth slowed, domestic demand remained robust and consumers continued to spend. Rising imports acted as a drag on the GDP figure. Core inflation for June was recorded at 3.3%, though some reports suggest inflation is improving while others describe it as stubbornly high. The sluggish expansion occurred against the backdrop of an ongoing war with Iran.

    Why it matters

    GDP growth rates indicate the health of the national economy and influence Federal Reserve decisions on interest rates. The tension between strong consumer spending and slowing overall growth suggests a complex economic environment. Mortgage rates have reached their highest level in a year.

    What is confirmed

    • The U.S. economy grew at a 1.5% rate in the second quarter.
    • Consumer spending remained robust during the second quarter.
    • Economic growth in the second quarter missed expert estimates.
    • Rising imports weighed on second quarter economic growth.

    Still unconfirmed

    • Mortgage rates hit their highest level in a year.

    What to watch next

    • Federal Reserve interest rate announcements
    • Next quarterly GDP report
    • Updates on Iran conflict impact on trade
    Sources used for this update (17)
    1. Bloomberg.com — US Economic Growth Misses Estimates Despite Robust Consumers
    2. The New York Times — U.S. Economy Grew More Slowly in the Second Quarter
    3. CNBC — U.S. economy slowed to 1.5% growth rate in Q2; June core inflation at 3.3%
    4. WSJ — U.S. Economic Growth Slowed to 1.5% in Second Quarter
    5. AP News — US economy grows at a sluggish 1.5% in second-quarter with inflation remaining stubbornly high
    6. NPR — The economy slowed a bit — but Americans continued to spend
    7. BBC — US economic growth slows to 1.5% in second quarter
    8. Al Jazeera — Why is US GDP growth slowing, and how can it be reversed?
    9. Reuters — Imports hold back US economic growth in Q2, but domestic demand robust
    10. NPR — The U.S. economy is still growing, but at a slower pace
    11. CBS News — U.S. economy slowed in second quarter, but consumers continue to spend
    12. Richmond Times-Dispatch — Virginia Gov. Spanberger restores rights to 66,000
    confidence 90%