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News Brief · United States · Published 23 Aug 2026, 12:10

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.

Economic Growth
Updated 23 Aug 2026, 12:10Occurred 30 Jul 2026, 12:30Exam relevance 96/100
Construction workers on a residential building site

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.

Key data

q1_annualised
+2.1%
q2_annualised
+1.5%

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