US Growth Slowed to 1.5% in Q2, but Private Demand Was Stronger Than the Headline
US GDP grew at a 1.5% annual rate in Q2 2026, but consumer spending and business investment suggest domestic private demand remained resilient.
Economy
Coverage of the US economy through the data businesses and decision-makers actually use: Federal Reserve policy, inflation, employment, growth, productivity and the forces shaping American demand and investment.
July PCE Shows Income Rising Faster Than Spending as Inflation Stays Uncomfortable
US personal income rose 0.4% in July and spending increased 0.2%, while PCE inflation was 3.7% year on year and the saving rate remained low at 3.0%.
US Retail Sales Fell 0.6% in July, but the Annual Spending Picture Remains Firm
US retail and food-service sales fell 0.6% in July 2026 but were 5.0% higher than a year earlier, showing a consumer market that remains active but uneven.
US Payrolls Fell in July as the Labor Market Lost More Momentum
US payroll employment fell by 23,000 in July 2026, unemployment held near 4.1%, and May and June job gains were revised sharply lower.
US Productivity Improved in Q2 as Output Rose Faster Than Hours Worked
US nonfarm business productivity increased 1.4% in Q2 2026 as output rose faster than hours worked, while unit labor costs increased 1.3%.
US Job Openings Held at 7.4 Million in June as Hiring Stayed Subdued
US job openings were little changed at 7.4 million in June 2026, while hires held at 5.3 million and quits remained at 3.2 million.
US Consumers Spent Faster Than Income Grew in June as the Saving Rate Fell to 2.7%
US personal income rose 0.2% in June 2026 while spending increased 0.3%, pushing the personal saving rate down to 2.7%.
US New Home Sales Rose in June, but Builders Still Faced a High-Rate Market
US new single-family home sales rose 1.6% in June 2026 to a 628,000 annual rate, showing modest improvement in a housing market constrained by borrowing costs.