Story · United States · 30 Jul 2026
US economy grew at a 1.5% annual rate in the second quarter
The advance GDP estimate showed continued expansion but a slower pace than in the first quarter, sharpening the growth-inflation policy trade-off.
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+1.5%
U.S. real GDP growth, Q2 2026 (annualised)
+2.1%
U.S. real GDP growth, Q1 2026 (annualised)
Exam link: Economic growth → business activity and investment → output, employment and aggregate demand
Understand the storyExpand Close
BEA estimated real US GDP increased at a 1.5% annualised rate in the second quarter of 2026, following 2.1% growth in the first quarter.
What happened
The first official estimate showed economic output continued to expand between April and June, but the annualised rate of growth eased from the previous quarter.
Why it matters
GDP growth influences employment, tax revenues and living standards, and helps determine whether tighter monetary policy is slowing demand too far.
Economic context
Advance GDP is revised as fuller data arrive, and the headline can be distorted by inventories or trade, so the expenditure components matter.
All key dataExpand Close
- U.S. real GDP growth, Q1 2026 (annualised)
- +2.1%
- U.S. real GDP growth, Q2 2026 (annualised)
- +1.5%
Terms explainedExpand Close
Annualised rate
The current monthly or quarterly pace expressed as if it continued for a full year. It is not the same as the actual total for the year.
Use it in an examExpand Close
Evidence
+1.5% — U.S. real GDP growth, Q2 2026 (annualised)
Explain
GDP growth influences employment, tax revenues and living standards, and helps determine whether tighter monetary policy is slowing demand too far.
Evaluate
Advance GDP is revised as fuller data arrive, and the headline can be distorted by inventories or trade, so the expenditure components matter.
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