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Washington, Jul 30 (AP) The US economy expanded at a surprising 3 per cent annual pace from April through June, bouncing back at least temporarily from a first-quarter drop that reflected disruptions from President Donald Trump's trade wars.
America gross domestic product — the nation's output of goods and services — rebounded after falling at a 0.5 per cent clip from January through March, the Commerce Department reported Wednesday.
The first-quarter drop was mainly caused by a surge in imports — which are subtracted from GDP — as businesses scrambled to bring in foreign goods ahead of Trump's tariffs.
Economists had expected 2 per cent second-quarter growth.
From April through June, a drop in imports added more than 5 percentage points to growth. Consumer spending came in at a weak 1.4 per cent, though it was an improvement over the first quarter. (AP) GRS GRS
Economic growth rebounds as GDP expands driven by import decline boosting measured output and modest consumer spending recovery. The national output expanded at an annualized three percent in the second quarter, rebounding after a prior quarter contraction. A substantial drop in imports added more than five percentage points to headline growth by reducing the subtraction of foreign goods. Consumer spending rose modestly at 1.4 percent, and the prior quarter's decline stemmed largely from a surge in imports as firms front loaded purchases ahead of trade tariffs.Press 'Enter' after typing page number.