U.S. economy grows 1.5% in Q2, below forecasts
Consumer spending strengthened 3.2%, but the gain was offset by weaker government spending, investment and exports.
The U.S. economy grew at a 1.5% annual rate in the second quarter, slowing from 2.1% in the previous quarter and below analysts' expectations of about 2%. Data from the U.S. Department of Commerce showed the weakness came mainly from lower government spending, investment and exports. On the other hand, consumer spending - the mainstay of the U.S. economy - rose 3.2% after slowing to 0.5% at the start of the year. BBC reported that Americans were still spending on vehicles, furniture and prescription drugs. Some economists said the growth figure does not fully reflect the strength of the economy, because consumption remains solid and AI-related investment is still supporting activity.