GLOBAL UPDATES

US GDP Growth Slows in Q2 Despite Strong Consumer Demand

US GDP growth decelerated in Q2 to 1.5% amid trade deficit expansion, yet robust consumer spending and AI-driven business investment signal economic resilience.

Editorial Desk

July 30, 2026 One Min Read

POLICY WIRE — Washington, DC — US economic growth decelerated in the second quarter, expanding at a 1.5 percent annualized rate, according to the Commerce Department’s Bureau of Economic Analysis in its preliminary second-quarter GDP report released Thursday.

The slowdown in growth was partly attributed to a widening trade deficit. However, the report highlighted an acceleration in consumer spending and robust business investment, particularly in equipment linked to the development of artificial intelligence infrastructure.

Gross domestic product increased at a 1.5 percent annualized rate last quarter, the Commerce Department’s Bureau of Economic Analysis said in its advance estimate of second-quarter GDP on Thursday.

Reporting by Policy-Wire (PW)

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