Economic growth increased but slowed during the second quarter of 2026, rising 1.5% after climbing 2.1% during the first quarter of 2026, according to Reuters. Economists had been expecting growth of 2.1%.
Consumer spending, which accounts for 70% of U.S. GDP, was robust, surging at a 3.2% rate after slowing to a 0.5% pace during the first quarter.
According to Reuters: “In addition to larger tax refunds, spending was boosted by higher-income households that are benefiting from strong growth in asset prices, but a recent stock market sell-off could slow the momentum. The recently ended FIFA World Cup tournament also likely added to the strength as did midterm election-related spending by nonprofits.”
The federal government’s spending contracted at a 0.8% annual rate during the second quarter.
Business investment increased at a 15.2% pace, likely driven by the boom in artificial intelligence investment.
