US economy grows 1.5% in Q2, missing forecasts

The U.S. economy grew at a 1.5% annual rate in the second quarter of 2026, down from a 2.1% pace in the first three months of the year, the Commerce Department said on July 30, 2026. Lower government spending, investment and exports drove the deceleration, causing the figure to fall short of analyst forecasts. Consumer spending, however, increased and gave the economy a lift. The world’s largest economy continues to weather the financial impact of the war with Iran and the drag from tariffs.