The US economy expanded at a sluggish 1.5% pace from April through June as rising imports weighed on growth. But consumer spending rose. And the Federal Reserve's favored measure of inflation grew more slowly last month, but remained above the central bank's 2% target. This was reported by Qazaqyia.kz citing Associated Press.
The Commerce Department reported that growth in US gross domestic product decelerated from 2.1% in the first three months of 2026 and came in below economists' expectations. But consumer spending, which accounts for about 70% of US economic activity, increased at a 3.2% annual clip, up from 0.5% in the January-March period.
Business investment, excluding housing, rose at an 8.4% pace, down from 10.6% from January through March but strong, reflecting a surge in investment in artificial intelligence.
The average long-term US mortgage rate rose for the fourth consecutive week to its highest level in a year, another setback for prospective homebuyers. The benchmark 30-year fixed rate mortgage rate rose to 6.66% from 6.58% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.72%.
Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, also rose this week. That average rate increased to 6.04% from 5.96% last week. A year ago, it was at 5.85%, Freddie Mac said.
Americans' confidence in the economy fell this month as gas prices ticked up along with the fighting between the US and Iran. The Conference Board said Tuesday that its consumer confidence index fell to 90.8 in July from 92.2 in June.