US GDP growth eases to 1.5% in Q2 2026 as price pressures firm
US GDP grew at a 1.5% annual rate in Q2 2026, down from 2.1% in Q1, as inflation measures were revised upward.
The US economy expanded at a 1.5% annualized pace in the April-June quarter of 2026, a slowdown from the 2.1% growth recorded in the first three months of the year, according to the latest data from the Bureau of Economic Analysis (BEA).
The second estimate for the quarter was unchanged from the initial reading. The BEA noted that an upward revision to consumer spending was largely offset by a higher import figure.
The slowdown was driven by a downturn in government spending, along with softer gains in investment and exports. Growth during the quarter was still supported by stronger consumer spending, exports, and investment, though a decline in government outlays and an increase in imports — which subtract from GDP — weighed on the headline number.
Underlying demand proved more resilient than first reported. Real final sales to private domestic purchasers, a measure that tracks consumer spending and private fixed investment, rose at a 4.2% annual rate, revised up from the earlier 3.9% estimate.
Inflation readings were also revised higher. The price index for gross domestic purchases climbed 5.8% in the quarter, up from the prior estimate of 5.7%. The personal consumption expenditures (PCE) price index rose 5.3%, compared with the earlier 5.1% reading. Excluding food and energy, the core PCE index increased 3.6%, above the previous 3.4% estimate.
Corporate profits posted a sharp gain during the quarter, rising by USD 400.9 billion from current production, a significant jump from the USD 74.4 billion increase seen in the first quarter.