Subscribe to our newsletter! Stay always in touch!
Nothing on this website or any associated links should be considered financial advice. Always consult a qualified financial, tax, or accounting professional before making any financial decisions.
Disclaimer: The information provided by The People’s Economist (TPE) in our financial calculators and dashboards is for general informational purposes only and is not intended to provide specific financial or investment advice. The calculations provided by these tools are based on certain assumptions that may vary with your specific circumstances. Though TPE does our best to assure the accuracy of our calculators, we make certain simplifying assumptions in some cases and the results of the financial calculators are not guaranteed and are not a substitute for professional financial advice. Users should seek the advice of a finance professional before making any financial decisions. Though we do our best to ensure the accuracy of the calculators, TPE is not responsible for any errors or omissions, or for any action taken in reliance on information contained on this website. TPE expressly disclaims all liability in respect of any actions taken or not taken based on any contents of this website. By using TPE financial calculators and dashboards, you agree to hold TPE harmless from any and all losses, liabilities, or expenses incurred as a result of using the information provided. The use of TPE Website and its contents does not create a client relationship with TPE. TPE may update or modify this disclaimer at any time without prior notice. By continuing to use TPE’s financial calculators after any changes to this disclaimer, you accept and agree to any and all modifications. Please contact us with any questions or concerns about this disclaimer or its use of financial calculators
Add AP News as your preferred source to see more of our stories on Google.
Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. Share
WASHINGTON (AP) — The U.S. economy expanded at a sluggish 1.5% pace from April through June as rising imports weighed on growth, yet consumers continued to spend. And the Federal Reserve’s favored measure of inflation grew more slowly last month. But it remained above the central bank’s 2% target at a time when Americans are frustrated about the high cost of living ahead of the midterm elections, now less than 100 days away.
Growth in U.S. gross domestic product — the nation’s output of goods and services — decelerated from 2.1% in the first three months of 2026, the Commerce Department reported Thursday, coming in below economists’ expectations. But consumer spending — which accounts for about 70% of U.S. economic activity — increased at a 3.2% annual clip, up from 0.5% in the January-March period.
A measure of the economy’s underlying strength – which strips out volatile government spending and trade numbers – looked good, expanding at a 3.9% annual pace, up from 1.7% from January through March.
Business investment, excluding housing, rose at an 8.4% pace, down from 10.6% from January through March but strong, reflecting a surge in investment in artificial intelligence.
Imports are subtracted from the economic figures because GDP is only supposed to count what is produced in the United States. Imports rose at an 11.5% pace, partly on a surge in shipments of computer chips and other products that support AI investment. The imports shaved 1.5 percentage off second-quarter GDP growth.
“The consumer rescued the quarter,’' said Olu Sonola, head of U.S. economics at Fitch Ratings. “AI investment remains a powerful growth story, but the import surge underpinning the buildout is a reminder that an AI boom does not automatically translate into an equally large boost to U.S. GDP.”
Read More
The Commerce Department also said Thursday that its personal consumption expenditures (PCE) price index, the one favored by the Fed, rose 3.7% last month from June 2025 , down from a 4.1% year-over-year increase in May. Excluding volatile food and energy prices, so-called core consumer prices were up 3.3% from a year earlier, little-changed from 3.4% increase in May. Prices actually fell 0.1% from May to June on a 9.2% drop in the price of gasoline and other energy products.
The PCE prices were about in line with economists’ expectations. But the year-over-year increase in prices has been stuck above the Fed’s 2% target for more than five years, and some Fed officials are getting impatient with progress against inflation.
The Fed on Wednesday chose to leave its benchmark interest rate unchanged for the fifth straight meeting. But three regional Fed presidents dissented, saying they wanted to raise rates to combat elevated inflation.
Sign up for Morning Wire: Our flagship newsletter breaks down the biggest headlines of the day. Email address Sign up By checking this box, you agree to AP's Terms of Use and acknowledge that AP may collect and use your data pursuant to our Privacy Policy
The American economy has been surprisingly resilient in the face of the Iran war and the spike in energy prices it caused. The job market has bounced back this year from a lackluster 2025, giving consumers the wherewithal to spend. Employers are adding an average 92,000 jobs a month this year, compared with fewer than 10,000 a month in 2025 when high interest rates and President Donald Trump’s erratic use of tariffs discouraged businesses from hiring.
Higher costs have frustrated Americans ahead of November’s midterm elections, which will determine whether President Donald Trump’s Republicans keep full control of Congress
A new AP-NORC poll found that the public is souring on the Iran war. And about 7 in 10 U.S. adults — 72% — say it’s “extremely” or “very” important for the U.S. to prevent domestic oil and gas prices from rising, up from 67% in March.
