6 days ago
US Economy Slows in Q2 Despite Strong Consumer Spending
The US economy grew more slowly in the second quarter of the year.
It expanded at a 1.5% yearly rate from April through June.
This was slower than the 2.1% rate recorded in the first quarter.
People continued spending money, with consumer spending rising strongly.
Imports, or goods bought from other countries, increased a lot.
Because imports are subtracted when calculating domestic production, they made the growth number look smaller.
Businesses also invested more, partly because of artificial intelligence.
The Commerce Department will release its final estimate on September 30.
The US economy grew at a 1.5% annual pace from April through June.
Second-quarter growth slowed from a 2.1% pace in the first quarter.
Consumer spending rose 3.4%, compared with 0.5% in January through March.
Imports increased 12.5% and reduced reported second-quarter growth by 1.64 percentage points.
Business investment increased amid an artificial-intelligence investment boom, while the final GDP estimate is due September 30.
- Who
- The United States economy, consumers, businesses, and the Commerce Department.
- What
- The US economy grew 1.5% in the second quarter, while consumer spending and business investment increased.
- Where
- The United States.
- When
- From April through June; the Commerce Department issued its second estimate on Wednesday, with a final estimate due September 30.
- Why
- Growth slowed mainly because imports rose sharply, subtracting from measured domestic production; higher energy prices linked to fighting with Iran also affected the economic backdrop.
Key facts
- Second-quarter GDP growth
- 1.5% annual pace
- First-quarter GDP growth
- 2.1% annual pace
- Consumer spending growth
- 3.4% annual pace in the second quarter
- Import growth
- 12.5% annual pace in the second quarter
- Impact of imports
- Imports reduced second-quarter growth by 1.64 percentage points
- Final GDP estimate
- Due September 30
Sources
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