US Economic Growth Slows in Q2 2026 Amid Moderating Inflation

The U.S. economy expanded at a 1.5% annual rate in the second quarter of 2026, a slowdown from the previous quarter, with the Iran war noted as a contributing factor. Despite this, consumer spending remained strong. Concurrently, the Personal Consumption Expenditures (PCE) index, a key inflation gauge, rose 3.7% in June, a deceleration from May, while core PCE increased by 3.3%. This data suggests a moderating economic pace and easing price pressures, which could influence future economic policy.