The advance estimate of Q2 GDP showed a 1.5% gain after a 2.1% increase in the previous quarter, with personal spending up 3.2% after a 0.5% gain.
There were positive contributions from residential and nonresidential fixed investment and negative contributions from net exports, private inventories and government spending.
The gross domestic purchases price index rose by 5.7% after a 3.6% gain in the previous quarter, while the PCE price index rose by 5.1% after a 4.6% increase.
Personal income was up 0.2% in June on gains in compensation, receipts on assets and transfer payments.
Personal consumption expenditures rose by 0.3% in June after a 0.9% increase in May, while real PCE was up 0.4% for a second straight month.
PCE prices fell by 0.1% after a 0.5% gain and core PCE prices rose by 0.1% after a 0.3% gain. The year-over-year rates slowed to 3.7% and 3.3%, respectively, still well above the Federal Reserve's 2% goal.
Initial jobless claims increased by 9,000 to 197,000 in the week ended July 25, but the four-week moving average fell by 5,000 to 202,750, a fifth straight decrease to the lowest level since the week ended May 16.
Insured claims fell by 7,000 to 1.782 million in the employment survey week ended July 18. Initial claims were at a level of 1.812 million in the employment survey week ended June 13.
Natural gas stocks rose by 28 billion cubic feet to 3.084 trillion cubic feet in the week ended July 24, down 1% from a year earlier but 6.4% higher than the seasonal average for the current week over the previous five years.
The initial Q3 GDP nowcast estimate from the Atlanta Fed is for a 5.0% gain.