The U.S. economy grew more slowly in the second quarter, while inflation remained above the Federal Reserve’s target. Gross domestic product increased at a 1.5% annualized rate from April through June, below expectations for 1.8% growth. The headline number was weaker, but some underlying economic drivers were stronger. Personal spending rose 2.1%, and a key measure of underlying demand increased 3.9%.
At the same time, the Fed’s preferred inflation gauge remained elevated.
The personal consumption expenditures price index showed annual inflation at 3.7% in June.
Core PCE, which excludes food and energy, rose 3.3% from a year earlier. Consumers continued spending, but the personal savings rate fell to 2.7%, its lowest level in four years.
For households and businesses, the broader takeaway is that slower growth, persistent inflation, consumer spending, savings, and interest rate policy are all connected parts of the economic picture.
#Economy #Inflation #GDP #FederalReserve Source: https://www.cnbc.com/2026/07/30/us-economy-slowed-to-1point5percent-growth-rate-in-q2-june-core-inflation-at-3point3percent.html