US economy slows as GDP growth slips to 1.5%, consumers keep momentum alive

US GDP growth slowed to 1.5% annual rate in Q2 2026, down from 2.1% in Q1, missing expectations.

Consumer spending accelerated to 3.2% annual pace, supporting the economy.

Imports surged 11.5%, subtracting 1.5 percentage points from GDP growth.

Core PCE inflation eased to 3.3% year-on-year in June, still above the Federal Reserve's 2% target.

Business investment outside housing remained strong at 8.4% annual pace, driven by AI-related investment.