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Yahoo Finance· July 30, 2026

US Economy Slows to 1.5% Growth in Q2

Preliminary data shows that US GDP grew at an annualized rate of just 1.5% in the second quarter of 2026, marking a notable deceleration from previous periods. Key factors behind the slowdown include a pullback in consumer spending and reduced business activity amid ongoing uncertainty over trade policy. The weak growth figures have intensified debate over whether the world's largest economy is edging toward recession or simply going through a temporary soft patch. For financial markets, the numbers are particularly significant as they narrow the Fed's room to maneuver while inflation remains elevated. Investors are closely watching how the central bank will respond to cooling growth signals alongside persistent price pressures.