U.S. GDP grows modestly at 1.5% in Q2 while consumer spending surges
The Commerce Department reported that U.S. gross domestic product rose 1.5% in the second quarter, with consumer spending climbing 3.4% year-over-year.
U.S. economic output expanded at a tepid 1.5% annualized rate during the second quarter, according to the Commerce Department’s latest figures. This marks a decline from the 2.1% pace recorded in the first quarter. Consumer spending, which accounts for about 70% of the economy, remained robust, increasing 3.4% on a yearly basis.
The primary drag on growth was a surge in imports—up 12.5%—driven by shipments of computer chips and other components supporting artificial-intelligence investment, which shaved 1.64 percentage points from the GDP total. In contrast, business investment rose, reflecting the ongoing AI-driven expansion. The report follows an initial estimate and precedes a final revision scheduled for September 30. Overall, the data suggest the economy is holding up despite external pressures such as geopolitical tensions and higher energy costs.
Why it matters
GDP and consumer-spending trends signal the health of the U.S. economy and influence policy and markets.
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