BUSINESS

WASHINGTON economy slows as inflation stays elevated

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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.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

On April 30, 2026: U.S. first quarter GDP grew at annualized 2.1 percent. On May 15, 2026: Philadelphia Fed forecasters projected second quarter GDP growth 2.1 percent.On June 25, 2026: May annual personal consumption expenditures inflation printed at 4.1 percent. On July 25, 2026: Initial U.S. weekly jobless claims filings rose to 197,000 total.On July 29, 2026 (2:00 PM EDT): Federal Reserve held benchmark interest rates steady at 3.75 percent.On July 30, 2026 (8:30 AM EDT): BEA reported second quarter U.S. GDP expanded 1.5 percent annualized.On July 30, 2026 (8:30 AM EDT): June annual PCE inflation rate registered at 3.7 percent overall.In August 2026: BEA will release revised second quarter GDP growth estimate figures.In September 2026: Federal Reserve committee will evaluate upcoming interest rate adjustment options.In November 2026: U.S. voters will weigh overall economic performance during midterm elections.

News Intelligence

Immediate US impact: Higher borrowing costs and elevated prices continue constraining family budgets. Possible long-term US impact: Persistent inflation and sluggish growth may trigger prolonged economic stagflation.Most affected groups: Low-income households, prospective homebuyers, retail businesses, commercial borrowers, and investors.What readers should prioritise across outlets and social media: Monitor official Bureau of Economic Analysis data over commentary speculation.