U.S. economic growth stagnated in the second quarter, with gross domestic product rising at an annualized rate of 1.5%, matching the median forecast of economists polled by Reuters. The preliminary estimate, released by the Bureau of Economic Analysis on Wednesday, marks a deceleration from the first quarter’s 2.1% expansion and underscores a softening in momentum amid persistent headwinds.
The latest reading represents the advance GDP estimate for Q2, the first of three releases that typically undergo revisions as additional data becomes available. The figure falls within the range of 1.4% to 1.6% projected by 70 economists surveyed ahead of the release, signaling broad alignment with expectations rather than a surprise.
The slowdown follows a period of robust growth earlier in the year, when GDP expanded at a 2.1% annualized pace in Q1. Analysts cited potential factors contributing to the moderation, including the lagged effects of tighter monetary policy, elevated global economic uncertainty, and domestic structural challenges such as labor market adjustments and supply chain frictions.
GDP, the broadest measure of economic activity, reflects the inflation-adjusted value of all goods and services produced within the country. The metric serves as a primary gauge of economic health and is closely monitored by policymakers, investors, and businesses for insights into demand trends and cyclical positioning.
