US GDP rises more than expected in second quarter
The United States economy expanded significantly more than expected in the second quarter, according to preliminary estimates from the Bureau of Economic Analysis on Wednesday, bouncing back after the first annualised decline in GDP in three years.
30 July 2025 14:49:42
Source: Sharecast
US GDP increased at a seasonally adjusted annual rate of 3.0% during the April to June period, well ahead of the 2.5% expansion expected by economists.
That followed a 0.5% economic contraction in the first quarter after a historic jump in imports – as companies front-loaded purchases ahead of the launch of Donald Trump's trade war in April – weighed heavily on output figures. This was the first annual drop in GDP since the first quarter of 2022.
"The increase in real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending," the BEA said in a report.
However, the economy is not out of the woods yet, with decreases in both investment and exports in the second quarter. Exports in particular dropped by 1.8%, after rising 0.4% three months earlier, marking the steepest annual drop in two years.
The closely watched personal consumption expenditures price index was 2.1% ahead of last year, down from a 3.7% increase in the first quarter, with the core PCE figure which excludes food and energy prices) easing to 2.5% from 3.5%.