Second-quarter GDP missed estimates but consumer spending surged 3.2%, offsetting declines in government outlays and investment.
US second-quarter GDP grew at an annualized 1.5%, below the 2.1% forecast and down from 2.1% in Q1. The slowdown was driven by a drop in government spending and weaker investment and exports.
Consumer spending accelerated to 3.2% from 0.5% in Q1, while real final sales to private domestic purchasers rose 3.9%, up from 1.7% previously. Inflation continued to ease, with June PCE matching expectations at 3.7% and core PCE at 3.3%.
Jobless claims came in at 197K, slightly below the 200K estimate, signaling ongoing labor market resilience despite softer growth.