US economic growth slows in the second quarter of 2026

Washington, July 30 (KUNA) -- Data released by the U.S. Department of Commerce on Thursday showed a slowdown in economic growth in the United States during the second quarter of this year. The bureau’s regular report indicated that gross domestic product, a comprehensive measure of goods and services, rose by just 1.5 percent during the period from April to June. According to CNBC, economists surveyed by Dow Jones had expected a growth rate of 1.8 percent, following a 2.1 percent expansion in the first quarter of this year.

A separate report showed that the Personal Consumption Expenditures (PCE) price index, the main measure relied upon by the Federal Reserve (the U.S. central bank) for its forecasts and interest rate decisions, fell by 0.1 percent (after seasonal adjustment) during the month, bringing the annual inflation rate to 3.7 percent, in line with expectations. Excluding food and energy, the core PCE index rose by 0.1 percent on a monthly basis and by 3.3 percent annually, against expectations of 0.2 percent and 3.3 percent, respectively. Although the Federal Reserve technically uses the total PCE index as a gauge for monetary policy, most of its officials consider core inflation a better indicator of long-term trends.

Stock futures performed positively following the release of the reports, while Treasury yields rose sharply. These reports come a day after the Federal Reserve voted, amid divided opinions, by a margin of nine to three to keep the benchmark borrowing rate within a range of 3.50 to 3.75 percent, a range that has remained unchanged since the beginning of the year. (End) R.S.R./A.S.