U.S. economic growth decelerated unexpectedly in the second quarter of 2026, according to the Commerce Department's advance estimate released Thursday.

The Bureau of Economic Analysis (BEA) reported that gross domestic product expanded at a seasonally adjusted annualized rate of 1.5% during the three-month period covering April, May, and June. That figure fell short of the 2.1% growth forecast from economists surveyed by LSEG. GDP, the broadest measure of goods and services produced in the economy, is closely tracked by policymakers, businesses, and investors as a primary gauge of overall economic health.

The advance estimate is the first of three releases the BEA issues for each quarter. A revised estimate of second-quarter GDP is scheduled for release in late August, followed by the final revision at the end of September. Advance estimates rely on partial source data and have historically been subject to meaningful revisions as more complete information becomes available.

The report arrives amid persistent uncertainty following the Federal Reserve's most recent decision to leave interest rates unchanged. GDP growth is one of several key indicators the Federal Reserve monitors under its dual mandate of maximum employment and stable prices when evaluating the trajectory of monetary policy. Zachary Hill, head of Horizon Portfolio Management, and Kenny Polcari, chief market strategist at SlateStone Wealth, discussed the potential market implications of the Fed's rate decision on Fox Business' The Claman Countdown.

The BEA, an agency within the U.S. Commerce Department, publishes GDP estimates on a quarterly basis to provide timely information on the pace of U.S. economic activity.