Posted on 07/30/25
| News Source: WSJ
The U.S. economy returned to growth in the second quarter after contracting in the first, largely due to trade swings.
The Commerce Department said U.S. gross domestic product—the value of all goods and services produced across the economy—rose at a seasonally and inflation adjusted 3.0% annual rate in the second quarter.
The reading exceeded the 2.3% growth that economists surveyed by The Wall Street Journal expected.
It followed a first quarter where GDP shrank at a 0.5% annual rate as businesses loaded up on imports to get ahead of the Trump administration’s anticipated tariffs.
Consumer spending increased at a 1.4% pace, picking up from the first quarter as a steady labor market underpinned households’ spending power. But consumer spending was offset by weaker business spending.