The American economy grew at a 3% annual pace from April-June in a surprising rebound from a first-quarter drop reflecting disruptions from global trade turmoil, the Associated Press reports.
The Commerce Department reported Wednesday that the U.S. gross domestic product bounced back after falling at a 0.5% clip from January-March. The first quarter drop stemmed mainly from a surge in imports — which are subtracted from GDP — as businesses sought to bring in foreign goods ahead of President Donald Trump’s tariffs.
Economists had forecast a smaller rebound of 2% in the second quarter of 2025.
The largest drop in imports since the COVID-19 outbreak added over five percentage points to growth from April-June. Consumer spending saw disappointing growth of 1.4% — still an improvement over the first quarter’s 0.5%.
Private investment saw the biggest drop since the pandemic, falling at a 15.6% annual pace. A drop in inventories — as businesses worked through goods stockpiled early in the year — took 3.2 percentage points off growth in the second quarter.
