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Q2 GDP 1.5% Misses Forecast, Gas Prices Spike

7/30/2026

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Story summary
  • The U.S. Commerce Department reported second-quarter GDP grew 1.5% annualized, missing the 2.1% forecast.
  • June’s Personal Consumption Expenditures index rose 3.7% year-over-year and core PCE increased 3.3%.
  • Average gasoline prices climbed from $2.98 to over $4 per gallon, peaking at $4.56 in May, AAA reported.
  • Oxford Economics said AI investment helped sustain consumer spending despite higher energy costs.
  • Federal Reserve Chair Kevin Warsh said the Fed would hold rates steady.