US second-quarter GDP slowed to 1.5% as spending stayed firm

The US economy expanded at a 1.5% annual rate in the second quarter, slowing from 2.1% in the first three months of the year as lower government spending and trade swings weighed on growth. Consumer spending remained a key support, though the two reports differed on the exact pace, with one putting it at 3.2% and another at 2.1%. Separate Commerce Department data showed the Personal Consumption Expenditures Price Index rose 3.7% in June from a year earlier, underscoring the inflation pressure facing households and the Federal Reserve. The Fed held interest rates steady on Wednesday, even as savings fell and higher imports cut into GDP.