Archive · 30 Jul 2026
US Q2 GDP Slows to 1.5% as Energy Prices Rise
The United States made a little more money in the second quarter of 2023, growing at a 1.5% rate each year.
This is slower than people expected.
People still bought a lot of things, so consumer spending grew by 3.2%.
The price of gas and oil went up, which made the economy feel a bit slower.
Companies kept buying computers and software for artificial intelligence, which helped the economy a bit.
The Federal Reserve decided to keep its main interest rate the same, at 3.5% to 3.75%.
U.S. GDP grew at 1.5% annualized in Q2, below the 2.1% forecast.
Consumer spending rose 3.2% annualized, the strongest component of the economy.
Higher energy prices and weaker government spending weighed on growth.
Business investment in AI infrastructure remained robust, boosting imports of semiconductors.
The Federal Reserve left its benchmark interest rate unchanged at 3.5%–3.75%.
- Who
- United States economy and Federal Reserve Chair Kevin Warsh
- What
- Second‑quarter GDP growth of 1.5% annualized
- When
- April to June 2023
- Where
- United States
- Why
- Higher energy prices and weaker government spending slowed growth, while consumer spending and AI investment remained strong
- GDP growth rate
- 1.5% annualized
- Consumer spending growth
- 3.2% annualized
- Federal Reserve rate
- 3.5%–3.75%
- Energy price impact
- Higher fuel costs raised inflation
- AI investment
- Robust business spending on AI infrastructure