world-economy

U.S. GDP Growth Slows to 1.5% as Consumer Spending Remains Resilient

The U.S. economy expanded at an annual rate of 1.5% during the second quarter, marking a deceleration from the first quarter's 2% growth pace, according to the Commerce Department's Thursday report. Consumer spending remained a bright spot, advancing at a solid 2% and continuing to sustain economic activity despite headwinds elsewhere. Government spending declined while imports surged faster than exports, both pressuring the overall growth figure. Inflation persisted as a concern, with prices climbing 3% in June—faster than wage gains and forcing shoppers to draw down savings or increase borrowing. The Federal Reserve held its benchmark interest rate steady Wednesday despite inflation running above target levels. Trade dynamics proved volatile throughout the quarter, with tariffs driving significant swings in import and export activity.