The U.S. economy grew at a 1.5% annual rate from April through June, according to the Bureau of Economic Analysis’ advance estimate released July 30. That was slower than the revised 2.1% pace in the first quarter.

Consumer spending, investment and exports all increased. Government spending fell, and a larger increase in imports weighed on the headline GDP calculation because imports are subtracted from domestic production.

A measure focused on private domestic demand told a stronger story. Real final sales to private domestic purchasers — consumer spending plus private fixed investment — rose at a 3.9% annual rate, up from 1.7% in the first quarter.

Prices remained a pressure point. BEA’s price index for gross domestic purchases rose at a 5.7% annual rate in the quarter. The personal consumption expenditures price index increased 5.1%, while the core PCE measure excluding food and energy rose 3.4%.

The Associated Press reported that consumer spending accelerated to a 3.2% rate and business investment excluding housing rose 8.4%, helped by spending tied to artificial intelligence. BEA will publish a second GDP estimate and corporate-profit figures on August 26.

Sources: U.S. Bureau of Economic Analysis, July 30, 2026: bea.gov source ↗ Associated Press, July 30, 2026: apnews.com source ↗