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US economy expands at sluggish 1.5% pace in second quarter, but consumer spending stayed strong
Consumer spending rose 3.4% while imports jumped 12.5% and cut 1.64 percentage points from growth, the Commerce Department said.
- The Commerce Department reported Wednesday that gross domestic product grew at a sluggish 1.5% pace from April through June, decelerating from the 2.1% growth rate during the January-March period.
- Still, consumer spending increased at a healthy 3.4% annual clip, up from 0.5% in the January-March period, accounting for about 70% of American economic activity.
- Imports rose at a 12.5% annual pace from April through June, partly due to a surge in shipments of computer chips supporting Big Tech investment, which reduced growth.
- Business investment was up, reflecting the ongoing technology expansion, while the American economy has proven resilient despite fighting with Iran and the spike in energy prices it caused.
- The report was the second of three Commerce Department looks at second-quarter GDP growth, with the final report due Sept. 30.
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The BEA’s second estimate left annualized growth unchanged, but corrected upwards all price indices in the quarter.
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Coverage Details
Total News Sources30
Leaning Left6Leaning Right9Center11Last UpdatedBias Distribution42% Center
Bias Distribution
- 42% of the sources are Center
42% Center
L 23%
C 42%
R 35%
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