U.S. economy grows 1.5% as consumer spending accelerates

U.S. economy grows 1.5% as consumer spending accelerates © Jeffrey MacMillan - USN & WR

U.S. News reports the economy grew at a 1.5% annualized rate in the second quarter, down from 2.1% in the first quarter and below economists' expectations.

A widening trade deficit and declining inventories weighed on growth, while consumer spending accelerated 3.2% and business investment in equipment rose 15.2%, driven in part by AI infrastructure investment. The underlying data point to resilient domestic demand despite slower headline economic growth.