US economy grew 1.5% in second quarter, Commerce Department estimates

This story about the advance estimate of second-quarter GDP will be updated with further details.

U.S. economic growth slowed unexpectedly in the second quarter of the year, according to the Commerce Department’s advance estimate.

The Bureau of Economic Analysis (BEA) on Thursday released its advance estimate of second-quarter GDP, which showed the economy grew at an annualized rate of 1.5% in the three-month period including April, May and June. 

That figure was below the 2.1% growth estimate of economists polled by LSEG.

It comes after the U.S. economy grew at a rate of roughly 2.1% in the first-quarter of 2026. Last year, the U.S. economy grew at an annualized rate of 4.4% in the third quarter and 0.5% in the fourth quarter, which contributed to a growth rate of about 2.1% for 2025 as a whole.

The BEA reported that the main categories that contributed to the rise in real GDP in the second quarter were increases in consumer spending, investment and exports – which were partly offset by a decrease in government spending. Imports increased in the second quarter.

The increase in investment was primarily due to increases in equipment and intellectual property products. Equipment increases were widespread and led by industrial, transportation and information processing equipment, while the rise in intellectual property products was mainly related to software and research and development.

Those gains were partly offset by decreases in private inventory investment, particularly wholesale trade, and nonresidential manufacturing structures.

A revised estimate of second quarter GDP is scheduled to be released in late August, while the final revision will be published at the end of September.