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U.S. economy slowed in second quarter as Iran war weighs on growth
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The nation's gross domestic product grew at an annual rate of 1.5% in the second quarter, the Commerce Department said Thursday, weaker than economists expected and a sign the Iran war is hurting growth.
The economy grew at a 2.1% annual rate in the first quarter.
In the second quarter, a surge in oil prices lifted U.S. gasoline prices from an average of $2.98 a gallon just before the war started in late February to well over $4.
Despite those pressures, U.S. consumers continued to spend at a healthy clip in the second quarter, the Bureau of Economic Analysis said in its latest snapshot.
Analysts said the softer inflation figures are likely to deter the Fed from hiking its benchmark interest rate in the short term.