New Delhi, Aug. 1 -- that the 3.2 percent surge in consumer spending that lifted the headline figure was largely funded by one-time tax refunds from President Trump's domestic legislation, and that American households had financed the rest by drawing down savings that are now running thinner.

Gross domestic product expanded at an annual rate of 1.5 percent between April and June 2026, the Bureau of Economic Analysis reported, slowing from the 2.1 percent pace recorded in the first quarter. The number was not a contraction. It was a deceleration, and the forces that prevented a worse outcome were mostly temporary.

Consumer spending accounted for most of the growth that materialized. Personal outlays rose 3.2 percent at an annual rate dur...