The U.S. economy expands at a sluggish 1.5% annualized pace in the second quarter (April to June), according to a Commerce Department report. Growth slows from 2.1% in the first quarter and comes in below economists’ expectations. The reporting highlights that rising imports weigh on overall GDP growth, even as parts of domestic demand remain resilient. The outlets note that consumer spending continues to rise despite the weaker overall growth figure.
On inflation, the reports say a Federal Reserve–favored measure of inflation increases but at a slower rate than the prior month. Even with that deceleration, inflation remains above the Fed’s 2% target. Policymakers are described as keeping interest rates on hold, reflecting the mixed picture of slower economic growth alongside inflation that has not yet reached the central bank’s goal.
Taken together, the sources describe a second quarter marked by weaker headline output growth, continued consumer demand, and inflation that moderates but still exceeds the Fed’s target.
