Mumbai, Aug. 1 -- The US economy slowed more than expected in the second quarter of 2026, but strong consumer spending and continued investments in artificial intelligence (AI) are expected to support growth in the coming quarters, according to an ICICI Bank report.

The report said US GDP growth eased to 1.5 per cent quarter-on-quarter seasonally adjusted annual rate (QoQsaar) in the April-June quarter from 2.1 per cent in the previous quarter, falling short of market expectations of 2.1 per cent. The slowdown was mainly due to higher net imports and lower government spending, despite resilient domestic demand.

According to the report, private consumption, which accounts for around two-thirds of US GDP, rebounded sharply to 3.2 per cent...