U.S. GDP growth slows in second quarter

The U.S. Commerce Department reported on Thursday, July 30, 2026, that gross domestic product grew at an annual rate of 1.5% in the second quarter of 2026, a slowdown from 2.1% in the first quarter and below economists' expectations. Inflation remained above the Federal Reserve's 2% target, though the Fed's preferred inflation gauge showed prices rising more slowly than in prior months. The Federal Reserve kept interest rates on hold during this period. Consumer spending remained resilient and rose during the quarter, even as rising imports weighed on overall growth, according to the Guardian and PBS NewsHour. Multiple outlets, including the AP, PBS NewsHour, BBC and NYT, tied the slowdown to persistent price pressures unsettling financial markets and consumer frustration over the cost of living, with the report arriving less than 100 days before the U.S. midterm elections. CBS News reported that the slowdown was linked in part to surging energy costs tied to the Iran war, a factor not corroborated by other sources in this set. Separately, NPR reported that China's economy grew 4.3% in the second quarter of 2026, its slowest pace since late 2022, as weak consumer spending and business investment offset gains from strong exports, partly driven by AI-related demand. The underlying government data and the 1.5% U.S. growth figure, down from 2.1%, are confirmed across seven independent sources. The specific causes of the slowdown are disputed: some reports point to rising imports as a drag on growth, while CBS uniquely cites Iran war-related energy costs as a contributing factor, a claim not echoed elsewhere. It remains unresolved how much weight each factor—imports, energy costs, or inflation—played in the deceleration, and no outlet in this set details further Federal Reserve policy actions expected in response to the data.