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US growth slowed to 1.5% in Q2 as spending proved resilient

Consumer spending grew at a 3.2% annual rate in the quarter, even as the report cited softer government spending, investment and exports.

Reported · Written up by our desk · Economy

The US economy grew at an annual rate of 1.5% in the second quarter, according to official figures, down from 2.1% in the first quarter.

The Commerce Department said the slowdown reflected lower government spending, investment and exports, while consumer spending rose 3.2% in the quarter after slowing to 0.5% earlier in the year, supporting overall activity.

The report also pointed to price pressures, with prices rising 3.5% year over year as of June, yet Americans continued spending on items such as motor vehicles, furniture and prescription drugs.

BBC Business said the growth figures arrive after the Federal Reserve held interest rates for a fifth straight time, amid concerns that the war with Iran and related Middle East conflict uncertainty are weighing on economic conditions through tariffs and higher oil prices, with Brent around $90 a barrel and average gasoline above $4 a gallon.

Latest closeBrent $90.40 ▲7.5%|Gasoline (RBOB) $3.215 ▼3.6%

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