🔻War with Iran reduced the United States’ economic growth in the second quarter

The U.S. Department of Commerce announced that the country’s economic growth has decreased in the second quarter of the year and that the consequences of the war with Iran have affected the U.S. economy.

According to the U.S. Bureau of Economic Analysis’ announcement, the U.S. economy grew only 1.5% in the second quarter of the year, while experts expected that growth to reach about 2%.

Based on data from this agency, the U.S. economy grew 1.2% in the first quarter of the year.

The Bureau of Economic Analysis said that “the slowdown in economic growth in the second quarter compared with the first quarter was mainly due to reduced government spending and a slowdown in the pace of investment and exports; although higher consumer spending offset this decline to some extent.”

Despite pressures stemming from erratic tariff policy and the war with Iran—which has caused a jump in energy prices and chemical fertilizers—the U.S. economy in the recent quarter has still had significant growth.

Investment in the AI boom has helped U.S. economic growth, but household consumption has been affected by years of rising prices, and the consequences of the war have further intensified this pressure.

The economic situation of American households will be one of the key issues in the November midterm elections; an election in which Democrats will try to regain control of Congress from Republicans led by Donald Trump.