US GDP growth dips as inflation and trade deficits pressure economy
US GDP growth slowed to 1.5 percent in the second quarter of 2026, impacted by trade deficits and rising fuel costs. Despite the slowdown, consumer spending remained resilient, bolstered by tax refunds and continued investment in artificial intelligence.
Why it matters
The cooling growth rate highlights the ongoing struggle of the US economy to balance inflationary pressures with high-tech industrial expansion.
GDP grew by 1.5 percent in the second quarter following a 2.1 percent increase in first quarter.
x whatsapp-stroke copylink google Add Al Jazeera on Google info The Personal Consumption Expenditure Price (PCE) Index report, one of the US Federal Reserve’s key metrics for gauging the rate of inflation, increased 3.7 percent for June [File: Carlos Osorio/Reuters] By Andy Hirschfeld and Reuters Published On 30 Jul 2026 30 Jul 2026 Economic growth in the United States slowed in the second quarter amid a growing trade deficit and tensions between the US and Iran which weighed on global fuel prices.
The US Gross Domestic Product (GDP), a measure of goods and services, grew by 1.5 percent between April and June, marking a slowdown from 2.1 percent growth in the first quarter of 2026, according to the Commerce Department’s Bureau of Economic Analysis report released on Thursday.
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