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NewsWPLG Local 10 – Main FeedJuly 30, 2026Miami-Dade

U.S. Economic Growth Slows to 1.5% as Inflation Remains Above Target

The U.S. economy grew at a 1.5% annual rate in the second quarter of 2026, slowed by a surge in imports despite strong consumer spending and business investment in artificial intelligence. While inflation showed signs of cooling, it remains above the Federal Reserve's 2% target, influencing voter sentiment ahead of the November midterm elections.

economyinflationGDPFederal Reserveconsumer spendingelectionsartificial intelligence
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Why It Matters

The pace of economic growth and the persistence of inflation directly impact the cost of living for all Americans and are central issues in the upcoming November midterm elections.

Key Facts

  • U.S. GDP grew at a 1.5% annual pace from April through June 2026, down from 2.1% in the first quarter.
  • Consumer spending increased by 3.2% in the second quarter, up from 0.5% in the first quarter.
  • Business investment (excluding housing) rose by 8.4%, driven by artificial intelligence investment.
  • Imports rose by 11.5%, largely due to computer chip shipments, which reduced GDP growth by 1.5 percentage points.
  • The Federal Reserve's preferred inflation measure (PCE) rose 3.7% year-over-year in June, down from 4.1% in May.
  • Core consumer prices (excluding food and energy) rose 3.3% year-over-year.
  • Monthly prices fell 0.1% from May to June, largely due to a 9.2% drop in energy costs.
  • The Federal Reserve kept benchmark interest rates unchanged for the fifth consecutive meeting.
  • Three regional Federal Reserve presidents dissented, favoring an interest rate increase.
  • Employers are adding an average of 92,000 jobs per month in 2026, compared to fewer than 10,000 per month in 2025.
  • 72% of U.S. adults consider it very or extremely important to prevent domestic oil and gas price increases.

Who's Mentioned

organizationCommerce Department“Reported the GDP and inflation data.”personOlu Sonola“Head of U.S. economics at Fitch Ratings.”organizationFederal Reserve“Central bank managing interest rates and inflation targets.”organizationAP-NORC“Conducted a poll regarding public sentiment on the Iran war and energy prices.”personDonald Trump“President whose policies and tariffs are discussed in relation to hiring trends.”