The Bureau of Economic Analysis (BEA) confirmed that U.S. real GDP grew at an annualized rate of 1.5% in the second quarter of 2026, matching both the advance estimate and consensus forecasts. Growth was supported by resilient consumer spending and robust business investment in equipment, which helped offset a significant drag from rising imports and a pullback in government outlays. The confirmed 1.5% print reflects a deceleration from the 2.1% expansion recorded in the first quarter.
Simultaneously, the July Personal Consumption Expenditures (PCE) price index rose 0.1% month-over-month, with the annual rate holding steady at 3.7%. Core PCE, the Federal Reserve’s preferred inflation gauge, increased 0.2% for the month and 3.3% year-over-year, meeting market expectations. Personal income grew by 0.2% in July while spending edged up 0.1%. Market reaction was muted, with Treasury yields and the U.S. dollar holding within narrow ranges.