US GDP Growth Slows to 1.5% in Q2 as Consumer Spending and Investment Hold Up

The Bureau of Economic Analysis reports US real GDP grew at a 1.5 per cent annualised rate in Q2 2026, down from the previous quarter, with household spending and business investment carrying most of the weight.

US economic growth slowed in the second quarter of 2026, official data shows, but the headline figure masks some genuine underlying strength. The Bureau of Economic Analysis advance estimate put real GDP growth at a 1.5 per cent annualised rate — weaker than Q1, yet driven by consumer spending rising at 3.2 per cent and business fixed investment climbing at 8.4 per cent, both annualised.

The Confederation of British Industry posted a summary of the release, describing the quarter’s composition in terms that closely mirror the BEA’s own breakdown.

Net exports shaved around one percentage point off growth, according to TD Economics and First Trust commentary on the release. Government spending also fell in Q2, dragging further on the headline rate. So the two pillars holding the economy up were essentially private — households and businesses.

Inventory contribution was small. Sources vary on whether stock building added to or subtracted from growth, and the exact figure isn’t settled across different analytical readings of the BEA data.

Financial commentary pointed to AI-related capital spending as one reason business investment held up so strongly — 8.4 per cent is a sharp pace by any measure. Reuters summarised the picture as an economy that remained resilient beneath a softer headline, with domestic demand staying firm despite trade distortions pulling the overall figure down.

The figures show no direct impact on Kent households or businesses, as this is a US national data release. Any knock-on effects — on exchange rates, transatlantic trade sentiment, or business confidence in the county — are plausible but not verified in the available sources.