- The U.S. economy slowed to a 1.5 percent pace from April through June, as increases in consumer and business spending were partially offset by a drop in government outlays, the Commerce Department said Thursday.
- The economy slowed unexpectedly in the second quarter of the year, according to the Commerce Department's advance estimate.
- The Bureau of Economic Analysis (BEA) on Thursday released its advance estimate, which showed the economy grew at an annualized rate of 1.5% in the three-month period including April, May and June.
- This figure was below the 2.1% growth estimate of economists polled by LSEG.
- A revised estimate of second quarter GDP is scheduled to be released in late August, while the final revision will be published at the end of September.
The U.S. economy's growth rate slowed unexpectedly to 1.5% in the second quarter, as reported by the Commerce Department. This figure, released in the advance estimate, fell short of the 2.1% growth forecast by economists surveyed by LSEG.123
The slowdown was primarily driven by a decline in government spending, which offset gains in consumer and business expenditures. The Bureau of Economic Analysis (BEA) noted that while consumer spending and business investments increased, they were not enough to counterbalance the drop in government outlays.
A revised estimate of the second quarter GDP is expected to be released in late August, with a final revision scheduled for the end of September. This upcoming data will provide further insights into the economic landscape and may influence future fiscal policies.5
The unexpected slowdown raises concerns about the sustainability of economic growth amid ongoing challenges, including inflation and supply chain disruptions. Analysts will be closely monitoring the revised figures to assess the overall health of the economy moving forward.
“The U.S. economy's growth rate of 1.5% from April to June was driven by increased consumer and business spending, but government outlays fell. A revised estimate of second quarter GDP is set for release in late August, with final revisions expected by the end of September.”
Fox Business
