U.S. Economic Growth Slowed to 1.5% in Second Quarter, Falling Short of Expectations
Consumer spending rose 3.2% as business investment stayed strong, even as imports shaved 1.5 percentage points from second-quarter growth, the Commerce Department said.
- The Commerce Department reported the United States economy grew at a 1.5% annualized rate in the second quarter, missing the 2.1% pace economists had forecast.
- Consumer spending surged 3.2% last quarter, supported by a $140 billion boost to household income from President Donald Trump's "One Big Beautiful Bill" tax refunds and strong asset price growth.
- Imports widened the trade deficit, subtracting 1.01 percentage points from growth, while gasoline prices rose back above $4 a gallon amid renewed hostilities in the Middle East.
- The Fed left its benchmark interest rate in a 3.50%-3.75% range; three committee members dissented, stating they "preferred" a quarter-percentage-point hike over concerns about inflation and the conflict with Iran.
- Pantheon Macroeconomics senior economist Oliver Allen warned growth is unlikely to be sustained, stating "Underlying growth was solid, but is unlikely to be sustained" as tax refund boosts fade and income growth weakens.
256 Articles
256 Articles
Trump aide busted on Fox as big economic bet blows up in his face
White House economic adviser Kevin Hassett scrambled Friday after being confronted by Fox Business’ Maria Bartiromo about the “way lower than expected” economic growth that fell far short of his previous predictions.In early May, Hassett told Bartiromo that he “personally would make a bet” with his “friends” that U.S. economic growth would be 4% for the “rest of the year.” He doubled down on that prediction in early July. And yet, on Thursday, t…
Hawaii Tribune-Herald
West Hawaii TodayUS economy slows as inflation bites
The U.S. economy slowed in the second quarter of the year, expanding at an annual rate of 1.5% as the war with Iran upended prices, supply chains and energy markets. The post US economy slows as inflation bites appeared first on Hawaii Tribune-Herald.
The U.S. economy grew only 1.5 percent quarterly on an annual basis, with seasonally adjusted figures, revealing the first estimate of gross domestic product (GDP), which was below the previous advance of 2.1 percent.
Coverage Details
Bias Distribution
- 58% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
