US economy slows to 1.5% growth in Q2 2026

Consumer spending increased 3.2% in Q2 2026

The US economy slowed in Q2 2026, as lower government spending weighed on growth despite stronger consumer spending, business investment, and exports, according to the advance estimate released Thursday by the US Commerce Department's Bureau of Economic Analysis (BEA).

Consumer spending, which accounts for roughly two-thirds of US economic activity, increased 3.2% in Q2 2026. Business investment also continued to expand, supported by growing investment in artificial intelligence (AI) technologies.

The data suggest the world's largest economy remains resilient despite the fallout from the conflict with Iran, although the war has weighed on consumer sentiment.