The US economy expanded at a slower-than-expected pace during the second quarter as a widening trade deficit offset strong consumer spending and business investment, according to CNN.
The report said gross domestic product grew at an annualized rate of 1.5% between April and June, below both the previous quarter's 2.1% pace and economists' forecasts. A surge in imports of semiconductors, computer equipment and other AI-related products widened the trade deficit, reducing overall economic growth.
Economists also pointed to a healthy labor market, rising incomes, larger tax refunds and solid savings as key drivers of consumer demand. However, the report said higher energy prices linked to the Iran conflict and lingering inflation pressures continue to pose risks to future economic growth.
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Economic growth was weaker than expected in the second quarter while inflation in June held well above the Federal Reserve’s goal, the Commerce Department reported Thursday.
— CNBC (@CNBC) July 30, 2026
Gross domestic product, a broad measure of goods and services, increased just 1.5% for the April-through… pic.twitter.com/XPvV6rzpxS
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