The US economy grew at an annualized rate of 1.5% in Q2 2026, down from 2.1% in Q1 and below the 2.1% expected, according to the BEA’s advance estimate. Nonresidential fixed investment slowed to 8.4% from 10.6%. Within this category, investment in structures declined for the tenth consecutive quarter (-5% vs -4.7%), and growth in intellectual property products eased (8.8% vs 13.8%), while equipment investment remained strong (15.2% vs 15.8%).
Residential investment rose 1.5%, its first increase in six quarters. Net exports imposed a larger drag on growth (-1.01 percentage points vs -0.37 percentage points), as export growth decelerated (4.5% vs 10.9%) while imports continued to expand at a solid pace (11.5% vs 11.8%). Government spending declined 0.8% (after a 4.4% gain in Q1), largely reflecting sales of crude oil from the Strategic Petroleum Reserve. Private inventory investment reduced GDP growth by 0.67 percentage points.
In contrast, consumer spending strengthened notably, accelerating to 3.2% from 0.5%, driven by higher outlays on prescription drugs, new light trucks, furniture, and increased spending at food services and accommodation establishments.
