U.S. Economic Growth Slows to 1.5% in Second Quarter
The U.S. economy grew at a slower pace than expected during the second quarter of 2026, with GDP expanding by an annualized rate of 1.5%. The slowdown was attributed largely to increased imports driven by demand for components used in artificial intelligence development, which reduced net exports and weighed on growth calculations. Despite this drag from trade, other parts of the economy showed strength. Consumer spending rose sharply at a 3.2% annualized rate, supported by tax cuts and resilience despite high gas prices. Business investment remained robust as companies continued to invest in IT equipment for AI infrastructure. Economists noted that while the headline GDP number was lower than expected, underlying demand indicators were strong. The report also highlighted how more than half of second-quarter growth came from computer-related spending, including data centers and software. However, inventory investment slowed due partly to shifts toward foreign-made technology.