U.S. GDP Growth Drops to 1.5% as PCE Inflation Remains Trapped at 3.7%

The U.S. economy grew at an annualized rate of 1.5 percent in the second quarter of 2026, according to Commerce Department and Bureau of Economic Analysis data released in Washington on July 30, 2026. That marks a slowdown from the 2.1 percent pace in the first quarter and falls short of many forecasters’ expectations. The report shows real GDP held back by a sharp 11.5 percent annualized jump in imports, which subtracted 1.5 percentage points from growth, largely due to surging demand for microchips and hardware for artificial intelligence infrastructure. Personal consumption grew 3.2 percent, while PCE inflation remained 3.7 percent year-over-year in June.