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U.S. GDP Growth Slowed in Second Quarter of 2026
The New York Times • • business
Key Points:
- The U.S. economy grew at an annual rate of 1.5% in the second quarter, slowing from 2.1% in the first quarter, influenced by disruptions from the war with Iran affecting prices, supply chains, and energy markets.
- Despite oil prices falling from spring peaks, higher costs for gasoline and petroleum products continue to strain households and businesses, dampening inflation-adjusted GDP growth.
- Consumer spending and business investment, particularly in artificial intelligence, remained relatively strong, with a core growth measure rising 3.9% in Q2 compared to 1.7% in Q1.
- Experts note that while underlying economic growth is solid, real incomes and spending have been declining, reflecting ongoing financial pressures on consumers.
- Preliminary data may be revised due to price volatility, but recent trends show rising business orders and retail sales, though inflation-adjusted consumer purchases and real incomes have softened significantly over the past six months.
