economy
Economy expanded at 1.5% rate in second quarter of 2026
The economy grew at an inflation-adjusted 1.5% annual rate in the second quarter, the Bureau of Labor Statistics said in a preliminary estimate of GDP that also indicated that consumer spending and artificial intelligence investment are keeping commerce steady.
TL;DR
- Second-quarter GDP grew at an inflation-adjusted 1.5% annual rate.
- Economic growth slowed from 2.1% in the first quarter.
- Consumer spending accelerated to a 3.2% clip, emerging as the main engine of growth.
- Investment in AI has led to a boom in data center construction.
- Final sales to private domestic purchasers, a measure of U.S. private sector demand, expanded at a 3.9% rate.
- The consumer price index was running at 3.5% for the 12 months ending in June.
- The unemployment rate fell to 4.2%, with the economy adding 57,000 jobs last month.
- The Federal Reserve held interest rates steady but some members voted to increase them.