US Economy Grew 2.2 Percent in Second Quarter

The United States Department of Commerce reported that the U.S. economy grew at a 2.2 percent annual pace from April through June. This final second-quarter figure is an upgrade from the department's previous estimate of 1.5 percent, although it represents a deceleration from the 2.5 percent growth rate seen in the first quarter.

Growth was primarily driven by a 3.8 percent increase in consumer spending and a 9 percent rise in non-residential business investment, which the department attributed to an artificial intelligence investment boom. Housing investment also rose 2.8 percent, marking the first increase for the sector since late 2024.

Overall GDP was dampened by a 12.6 percent surge in imports, including computer chips for AI, which reduced growth by nearly 1.7 percentage points. The report indicates the economy remained resilient despite energy price spikes resulting from conflicts with Iran.