The U.S. economy expanded at a 1.5% annualized rate in the second quarter, decelerating from 2.1% growth in the first three months of the year, according to the Commerce Department's Bureau of Economic Analysis. The slowdown was driven by a widening trade deficit and disruptions from the war in the Middle East, which shook energy prices and supply chains. However, consumer spending accelerated, and business investment in equipment for artificial intelligence infrastructure remained robust, indicating underlying strength in domestic demand. The advance estimate for gross domestic product (GDP) covered the three months through June, with economists polled by Reuters having anticipated the moderation. The 1.5% figure marks a significant easing from the previous quarter's pace, reflecting headwinds from global tensions and trade imbalances, though private consumption and technology-related capital spending helped cushion the downturn. The data suggest the economy is losing momentum amid persistent inflation and higher interest rates, while the AI buildout provides a counterbalance. Further details are expected in subsequent revisions.