US Economy Surges 3 Percent in 2nd Quarter, Tops Market Estimates

Contact Your Elected Officials

‘Early signs for the third quarter are pointing up,’ said one bank’s chief economist.

The U.S. economy sharply rebounded in the second quarter following a contraction in the first three months of 2025.

The GDP surged 3 percent in the April—June period, up from the 0.5 percent decline in the first quarter, according to the advanced estimate from the Bureau of Economic Analysis.

Economists had penciled in a 2.4 percent growth rate.

Last quarter’s gross domestic product (GDP)—the total value of all goods and services produced in the national economy—was fueled by a decline in imports and a modest increase in consumer spending.

Imports plummeted by 30.3 percent, down from the previous quarter’s 38 percent spike when companies stockpiled foreign goods to avoid higher tariff-related costs.

Exports fell by 1.8 percent after rising by 0.4 percent in the January–March span.

“Impacts from trade policy has showed up. The decrease in imports were led by nondurable consumer goods, mainly medicinal, dental, and pharmaceutical items,” Jeffrey Roach, chief economist at LPL Financial, said in a note emailed to The Epoch Times.

Economists have closely monitored the trade component of the GDP data, as imports subtract from the total.

Real consumer spending advanced by 1.4 percent from the 0.5 percent first-quarter jump. Recent numbers suggest that shoppers have reopened their wallets, but market watchers have debated whether this is because they have shrugged off tariffs or are trying to front-run higher prices.

Despite the category’s 24 percent increase in the first quarter, gross private domestic investment, or GPDI, fell by almost 16 percent. This is a key component, as it highlights investments by private companies and individuals in the economy, ranging from home construction to spending on factories and machinery.

Government consumption made a negligible contribution to the final GDP reading. There was a divergence between the three levels of government, as federal outlays fell by 3.7 percent, while state and local spending increased by 3 percent.

On the inflation front, the GDP price index—a gauge of prices of goods and services produced domestically—climbed by a lower-than-expected 2 percent, lower than the 3.8 percent increase in the first quarter.

personal consumption expenditures (PCE) prices, which reflect changes in the cost of goods and services purchased by households, increased by 2.1 percent, easing from 3.7 percent in the previous quarter and coming in below the market expectation of 2.9 percent.

Core PCE, which excludes the typically volatile categories of food and energy, rose at a higher-than-anticipated rate of 2.5 percent, though this marks a slowdown from the 3.5 percent recorded in the prior three-month period.

By Andrew Moran

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

A Few Fun Alternatives to the”Gory Stuff” at Halloween

Halloween has gone off the rails with gore through the decades.  But there are ways to enjoy the "scary stuff" without giving into darker, pagan alliances.  

Germany Stands To Lose & Poland To Gain From The EU’s Latest Energy Move

The US is geostrategically re-engineering Europe at Germany’s expense in order to facilitate Russia’s post-Ukraine containment.

EBT Serfs Threaten Violent Mass-Shoplifting Spree if Food Stamps Cut

The EBT serfs of the underclass may be in for a rough ride come November, when mommy government is slated to wean them off the teat of state.

The Real Reason Why the Left is Unhinged

Nine out of thirteen of the original states required you to be a Bible believing Christian to serve in government at the time of the founding.

The Sacrificial Lambs of the Riyadh Standup Scene

Which is the greater injustice: jailing political dissidents, or millions dead from pharma crimes with no accountability for those responsible?

No Shutdown Meeting Until Stopgap Funding Approved, Trump Tells Democrats

Democrats are demanding Republicans renew Affordable Care Act subsidies in exchange for approving the House Appropriations bill.

Texas Appoints Higher Education Ombudsman to Enforce DEI Violations

Texas is moving to enforce bans on DEI practices in universities and potentially restrict college courses focused on gender and race.

House Judiciary Chair Refers Ex-CIA Director John Brennan for Criminal Prosecution

House Republicans referred ex-CIA Director John Brennan to AG Pam Bondi for prosecution over the 2016 probe into alleged Russian–Trump collusion.

FBI Has Arrested 28,000 Violent Criminals Since Jan. 20: Trump

President Trump praised the FBI for doing an “incredible job,” citing thousands of arrests and major disruptions of criminal activity nationwide.

Trump Calls off Meeting With Putin, White House Says

White House says Secretary Rubio and Russia’s Lavrov had a productive call; no further meetings or Trump-Putin talks are planned soon.

President Signs Rare Earth Agreement With Australia’s PM

President Trump hosted Australian PM Albanese at the White House, where both leaders signed a new agreement on rare earth mineral cooperation.

Trump Says Insurrection Act Is ‘Strongest Power a President Has’

President Trump detailed plans to invoke the Insurrection Act to address rampant crime, calling it the “strongest power a president has.”

Army Corps of Engineers to Pause $11 Billion in Projects During Shutdown: Vought

Russ Vought, director of the White House’s OMB, has added to the growing pile of federal projects paused during the government shutdown.
spot_img

Related Articles

Popular Categories

MAGA Business Central