Data released by the Bureau of Economic Analysis showed that the U.S. economy grew at an annualized rate of 1.5 percent in the second quarter of 2026, down from the 2.1 percent growth rate in the first quarter of the year.

Gross domestic product fell short of economists’ expectations. A Bloomberg poll of economists had predicted a 2 percent growth rate, and a Dow poll predicted a 1.8 percent growth rate. 

A separate report on personal income and outlays showed U.S. consumer spending rose, with personal consumption expenditures increasing at a rate of 2.1 percent during the second quarter, up 0.4 percent from the first. PCE inflation ticked down 0.1 percent from May to June, but core PCE—which does not include food and energy prices—rose 0.1 percent over that same period. 

Year-over-year PCE is up 3.7 percent, and core PCE is up 3.3 percent. Both figures are above the Fed’s 2 percent inflation target.