Second-quarter GDP missed forecasts but consumer spending surged 3.2%, offsetting declines in government outlays and investment.
The US economy grew at an annualized 1.5% in the second quarter, below the 2.1% consensus 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% in the prior quarter. 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 forecast, signaling ongoing labor market resilience despite softer GDP growth.