US economy grows 1.5% in Q2, consumption drops

U.S. economic growth slowed to an annual rate of 1.5% in the second quarter of 2026, below the expected 2.1%. The main reasons are a slowdown in government spending, an increase in imports, and a decline in exports, all of which reduced overall growth, despite continued support from consumer spending and investments in equipment and infrastructure. Additionally, a 3.2% rise in consumer expenditure and expanded investments, especially in artificial intelligence, helped boost the economy despite some slowdown in other sectors. Inflation temporarily decreased to 3.7%, and the Federal Reserve remains committed to raising interest rates, with expectations of another hike if inflation continues to increase.

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