The US economy grew at a slower annualised rate of 1.5% in the second quarter of 2026, but consumer spending remained strong. The figures matter because household spending is the main driver of the economy, while persistent inflation continues to complicate the outlook for families and policymakers.

Growth slowed from 2.1% in the first quarter and came in below economists’ expectations, partly as imports weighed on the GDP calculation. Consumer spending rose at a 3.2% annualised rate, up from 0.5% in the previous quarter, while an underlying measure excluding volatile trade and government spending grew by 3.9%; inflation eased in June but remained above the Federal Reserve’s 2% target.