FX.co ★ US Economic Growth Slows to 1.5% in Q2

The US economy grew at an annualized rate of 1.5% in the second quarter of 2026, down from 2.1% in the previous quarter and in line with the preliminary estimate. Personal consumption expenditures rose 3.4%, the fastest pace since the third quarter of 2025, supported by a 4.3% increase in goods spending and a 3.1% gain in services. Fixed investment advanced 7.0%, driven by an 8.5% surge in nonresidential investment, as outlays on equipment and intellectual property products were buoyed by strong demand for AI-related technologies. Residential investment edged up 1.3%, ending a five-quarter downturn. By contrast, government spending declined 1.0%, weighed down by a 13.2% drop in nondefense federal outlays. Net trade also detracted from growth, with imports jumping 12.5% and outpacing a 4.5% rise in exports.