US GDP growth slows to 1.5% in Q2, consumer spending surges

The US economy grew at a 1.5% annualized rate in the second quarter, down from 2.1% in Q1, according to the Commerce Department's Bureau of Economic Analysis. The slowdown was driven by a widening trade deficit, but consumer spending surged 3.2% after a 0.5% pace in Q1, and business investment in AI-related equipment remained robust. Economists had forecast 2.1% growth, but estimates were revised down after June data showed a moderate contraction in the goods trade deficit. Consumer resilience was supported by larger tax refunds this year, offsetting higher petrol prices from the Middle East conflict.