Growth in the US slowed in the three months to June, according to official figures. The Commerce Department said the US economy grew at an annual rate of 1.5% in the second quarter, down from 2.1% seen in the first three months of the year.
It comes as the world's largest economy continues to weather the financial impact of the war with Iran and US businesses navigate tariffs. The growth figure was lower than analysts had estimated, with the downturn due to lower government spending, investment and exports.
However, the economy received a boost from an increase in consumer spending.
What drove the slower growth?
The slowdown reflected weaker government spending, investment and exports, according to the Commerce Department's figures. Those pressures outweighed the boost from higher consumer spending in the second quarter.
How does this compare with earlier in the year?
The US economy grew at an annual rate of 2.1% in the first three months of the year, which means second-quarter growth marked a decline from the pace seen at the start of 2026. The latest figure also came in below analysts' estimates.
What wider pressures is the economy facing?
The world's largest economy continues to weather the financial impact of the war with Iran and US businesses are navigating tariffs.
Key Facts
- US economic growth slowed in the three months to June.
- The Commerce Department said the economy grew at an annual rate of 1.5% in the second quarter.
- That was down from 2.1% in the first three months of the year.
- Lower government spending, investment and exports weighed on growth.
- Consumer spending increased and helped support the economy.
