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Economic News

United States: Growth Continued Through Spring 2026

July 30, 2026
Benoit P. Durocher, Director and Principal Economist • Marc-Antoine Dumont, Senior Economist

Highlights

  • According to the advance estimate of the national accounts, real GDP increased at an annualized rate of 1.5% in the second quarter of 2026. This followed annualized growth of 2.1% in the first quarter.

Comments

Growth in the US economy slowed, but private domestic demand remained strong. Real consumer spending strengthened markedly, accelerating from an annualized increase of 0.5% in the first quarter to 3.2% in the second. Non-residential investment also supported economic activity, rising 8.4%, driven by a 15.2% increase in equipment spending and an 8.8% gain in intellectual property investment amid continued expansion in artificial intelligence-related technologies.

The slowdown in GDP growth therefore stemmed primarily from more volatile components. Government spending and net exports subtracted respectively 0.1 and 1.0 percentage point from growth. Imports surged by 11.5%, reducing GDP growth by roughly 1.5 percentage points. Inventory drawdowns also weighed on activity, subtracting 0.7 percentage point from second-quarter GDP growth. That said, the new tariffs announced by the White House could prompt many businesses to build inventories of affected goods as a precaution over the coming months.

Implications

Although growth came in slightly below consensus expectations, the overall picture remains favourable, with the US economy continuing to demonstrate resilience. Domestic demand remained robust, supported in particular by strong business non-residential investment. This should foster productivity gains and eventually help moderate growth in consumer prices. If energy price growth remains contained and inflation does not reaccelerate, we continue to believe that the Federal Reserve will keep its policy rate unchanged for several more quarters.

NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.