WASHINGTON — U.S. economic growth slowed more than expected in the second quarter, expanding at a 1.5% annualized rate as a surge in imports offset solid consumer spending and business investment, the Commerce Department's Bureau of Economic Analysis said on Thursday.
The advance estimate marked a slowdown from a 2.1% growth rate in the first quarter and came below economists' expectations for roughly 1.8% growth, according to Reuters. The data are subject to revision, with the BEA scheduled to release its second estimate on Aug. 26.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose at a 3.2% annualized rate in the second quarter, accelerating from the previous quarter. Business investment also remained strong, with equipment investment increasing at a 15.2% rate.
The increase in imports, including goods linked to heavy investment in artificial intelligence infrastructure, weighed on the headline growth figure. Imports subtracted about 1.01 percentage points from GDP growth, while a decline in inventories also reduced output.
A measure of final sales to private domestic purchasers, which excludes trade and inventories and is closely watched as an indicator of underlying domestic demand, increased at a 3.9% annualized rate.
The figures provide the latest official snapshot of the U.S. economy as policymakers assess growth and persistent inflation pressures. The BEA said the second-quarter GDP estimate remains preliminary and will be updated as additional data become available.
