U.S. economic activity slowed during the second quarter of 2026, with gross domestic product growth reaching 1.5%, according to new government data. This marks a slowdown from previous quarters and fell below some analysts’ expectations.
CBS News reports that energy costs surged during the April-to-June period, with international tensions contributing to weakness in economic activity. CNBC’s analysis attributes the slower-than-expected growth to declines in federal government spending and inventory levels, rather than to external energy shocks alone.
The slowdown in economic growth occurred amid ongoing inflation concerns, with core inflation measured at 3.3% for June. The divergence in explanations between sources reflects different perspectives on whether external geopolitical factors or domestic fiscal and inventory adjustments were the primary drivers of the quarterly deceleration.
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