Business & Finance
US economy grew at 1.5% annual rate in second quarter, Commerce Department confirms
Gross domestic product growth slowed from the first quarter as rising imports offset robust consumer spending and artificial intelligence investments.
The short version
- US gross domestic product expanded at an unrevised 1.5% annualized rate in Q2 2026, down from 2.1% in Q1.
- A 12.5% increase in imports—partly driven by artificial intelligence technology hardware—subtracted 1.64 percentage points from the headline growth total.
- Underlying demand remained firm, supported by a 3.4% rise in consumer spending and an 8.5% increase in business investment outside of housing.
- The Commerce Department will release its final revised Q2 GDP figure on September 30.
Key facts
- The Commerce Department reported that second-quarter GDP growth held at an estimated 1.5% annual pace, down from 2.1% in the first quarter.[Associated Press · ABC News]
- Consumer spending accelerated to a 3.4% annual rate in the second quarter, up from 0.5% in the prior quarter.[Associated Press · ABC News]
- Imports grew at a 12.5% rate, reducing calculated GDP growth by 1.64 percentage points due to trade accounting rules that subtract foreign goods from domestic output.[Associated Press · ABC News]
- Non-residential business investment rose 8.5%, supported by capital spending on artificial intelligence infrastructure.[ABC News]
- An economic measure that excludes government spending and trade grew at a 4.2% rate, up from 1.7% in the previous quarter.[ABC News]
- Residential real estate investment increased for the first time since late 2024.[ABC News]
What remains uncertain
- The Commerce Department's estimate is subject to further revision in its final second-quarter GDP report on September 30.[Associated Press · ABC News]