US Economy Grows at Sluggish 1.5 Percent Pace in Second Quarter
· Business · Fortune, Bloomberg, Yahoo Finance
The US economy grew at an annualized pace of 1.5 percent from April through June, decelerating from 2.1 percent in the first quarter. Consumer spending remained a bright spot, increasing at a healthy 3.4 percent clip and accounting for about 70 percent of economic activity. The primary drag on GDP growth was a 12.5 percent surge in imports, driven partly by investments in artificial intelligence hardware. Meanwhile, a key inflation measure watched by the Federal Reserve remained at 3.7 percent in July compared to a year earlier. Stubbornly high prices and energy costs continue to shape economic pressures ahead of upcoming midterm elections.
Why it matters
Sluggish US growth and persistent inflation influence global monetary policy and trade dynamics that impact emerging markets worldwide.
Read the original report — Fortune
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