{"id":304817,"date":"2025-07-30T20:41:10","date_gmt":"2025-07-30T20:41:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/304817\/"},"modified":"2025-07-30T20:41:10","modified_gmt":"2025-07-30T20:41:10","slug":"us-economy-rebounds-strongly-in-the-second-quarter-with-3-growth","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/304817\/","title":{"rendered":"US economy rebounds strongly in the second quarter with 3% growth"},"content":{"rendered":"

WASHINGTON (AP) \u2014 The U.S. economy expanded at a surprising 3% annual pace from April through June, bouncing back at least temporarily from a first-quarter drop that reflected disruptions from President Donald Trump\u2019s trade wars<\/a>. <\/p>\n

Still, details of the report suggested that U.S. consumers<\/a> and businesses<\/a> are wary about the economic uncertainty arising from Trump\u2019s radical campaign to restructure the American economy by slapping big taxes \u2014 tariffs \u2014 on imports from around the world.<\/p>\n

\u201cHeadline numbers are hiding the economy\u2019s true performance, which is slowing as tariffs take a bite out of activity,\u201d Nationwide chief economist Kathy Bostjancic wrote.<\/p>\n

America gross domestic product \u2014 the nation\u2019s output of goods and services \u2014 rebounded after falling at a 0.5% clip<\/a> from January through March, the Commerce Department reported Wednesday. The first-quarter drop, the first retreat of the U.S. economy in three years, was mainly caused by a surge in imports \u2014 which are subtracted from GDP \u2014 as businesses scrambled to bring in foreign goods ahead of Trump\u2019s tariffs.<\/p>\n

<\/p>\n

\n AP AUDIO: Along with a strong second quarter rebound for the US economy, some red flags\n <\/p>\n

AP business correspondent Damian Troise reports the U.S. second quarter GDP showed an unexpected economic rebound.<\/p>\n

The bounceback was expected but its strength was a surprise: Economists had forecast 2% growth from April through June.<\/p>\n

From April through June, a drop in imports \u2014 the biggest since the COVID-19 outbreak \u2014 added more than 5 percentage points to growth. Consumer spending registered lackluster growth of 1.4%, though it was an improvement over the first quarter\u2019s 0.5%.<\/p>\n

Private investment fell at a 15.6% annual pace, biggest drop since COVID-19 slammed the economy. A drop in inventories \u2014 as businesses worked down goods they\u2019d stockpiled in the first quarter \u2014 shaved 3.2 percentage points off second-quarter growth.<\/p>\n

A category within the GDP data that measures the economy\u2019s underlying strength weakened in the second quarter, expanding at a 1.2% annual pace, down from 1.9% from January through March and the weakest since the end of 2022. This category includes consumer spending and private investment but excludes volatile items like exports, inventories and government spending. <\/p>\n

Federal government spending and investment fell at a 3.7% annual rate on top of a 4.6% drop in the first quarter. <\/p>\n

Wednesday\u2019s GDP report showed inflationary pressure easing in the second quarter. The Federal Reserve\u2019s favored inflation gauge \u2013 the personal consumption expenditures, or PCE, price index \u2013 rose at an annual rate of 2.1% in the second quarter, down from 3.7% in the first. Stripping out volatile food and energy prices, so-called core PCE inflation rose 2.5%, down from 3.5% in the first quarter.<\/p>\n

On his Truth Social media platform, Trump heralded the GDP gain and stepped up his pressure on the Federal Reserve to cut interest rates: \u201c2Q GDP JUST OUT: 3%, WAY BETTER THAN EXPECTED! \u201cToo Late\u201d MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!\u2019’<\/p>\n

Trump sees tariffs as a way to protect American industry<\/a>, lure factories back to the United States and help pay for the massive tax cuts he signed into law July 4. <\/p>\n

But mainstream economists \u2014 viewed with disdain by Trump and his advisers \u2014 say that his tariffs will damage the economy<\/a>, raising costs and making protected U.S. companies less efficient. They note that tariffs are paid by importers in the United States, who try to pass along the cost to their customers via higher prices. Therefore, tariffs can be inflationary \u2014 though their impact so far has been modest. <\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON (AP) \u2014 The U.S. economy expanded at a surprising 3% annual pace from April through June, bouncing…\n","protected":false},"author":2,"featured_media":304818,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5311],"tags":[51,32,34092,5211,1700,20091,4179,3058,112133,5214,22230,45657,7143,49,978,659],"class_list":{"0":"post-304817","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-states","8":"tag-business","9":"tag-donald-trump","10":"tag-economic-indicators","11":"tag-economic-policy","12":"tag-economy","13":"tag-federal-reserve-system","14":"tag-general-news","15":"tag-international-trade","16":"tag-kathy-bostjancic","17":"tag-tariffs-and-global-trade","18":"tag-trump-media-technology-group","19":"tag-u-s-department-of-commerce","20":"tag-u-s-news","21":"tag-united-states","22":"tag-us","23":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114944126712632588","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/304817","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=304817"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/304817\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/304818"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=304817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=304817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=304817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}