US Economic Growth Decelerates to 1.5% in Second Quarter, Missing Forecasts
Initial Commerce Department figures show gross domestic product trailing market expectations amid elevated interest rates.
American economic expansion cooled noticeably in the second quarter of the year, driven by a sharp deceleration that pulled growth well below initial market projections.
Gross domestic product increased at an annualized rate of 1.5% from April through June, according to the advance estimate released by the Bureau of Economic Analysis. The reading missed expectations from economists polled by LSEG, who had forecasted a 2.1% growth rate for the three-month period.
The Commerce Department calculates gross domestic product as the primary measure of all goods and services produced across the United States economy. The slowdown reflects the ongoing cooling effects of elevated interest rates as financial markets continue to gauge the impact of Federal Reserve policy decisions on broader economic health.
The initial reading represents the first of three official estimates published for the quarter. A revised second-quarter estimate will be issued in late August, followed by the final official revision at the end of September.
