The U.S. economy grew at an annualized rate of 3% in the second quarter, a sharp rebound from the 0.5% contraction seen earlier this year, according to the Commerce Department.
The growth was largely driven by a steep decline in imports, which fell 30.2% after surging in the first quarter. Businesses drew from existing inventories rather than bringing in new goods ahead of President Trump’s tariff increases.
TRUMP EFFECT. pic.twitter.com/qKroGXDmuv
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Exports also contributed to the rebound. Consumer spending strengthened to a 1.4% rate, up from 0.5% in the previous quarter, signaling continued confidence despite economic uncertainty.
A key measure of demand, real final sales to private domestic purchasers, slowed to 1.2%, the weakest since late 2022.
🚨 "BETTER THAN EXPECTED": The economy grew at a 3.0% rate in Q2 — shattering economists' expectations once again. pic.twitter.com/MLlSTTbGiQ
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While the economy faces ongoing challenges, the report underscores its resilience. “It takes quite a bit to push the U.S. into a recession,” said Sarah Wolfe, senior economist at Morgan Stanley.
This data adds momentum to President Trump’s case that his economic strategy is working.
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TIPP Staff
