Economic growth in the United States slowed in the second quarter of 2026, with GDP rising 1.5 percent between April and June, down from 2.1 percent in the first quarter, according to the Commerce Department. Consumer spending increased 3.2 percent, boosted by tax refunds from the 'One Big Beautiful Bill Act' and higher petrol prices, which averaged $4.09 per gallon in late July.
Inflation, measured by the PCE index, rose 3.7 percent annually in June, easing from 4.1 percent in May, while the Federal Reserve held interest rates at 3.5-3.75 percent. Analysts noted that technology investment, particularly in AI and data centers, continues to drive growth but raises sustainability concerns. Markets rose on Thursday, with the Nasdaq up 2.6 percent.
