US GDP Growth Tops Forecasts in Q2

The US economy grew an annualized 3% in Q2 2025, rebounding from a 0.5% contraction in Q1, and beating expectations of a 2.4% rise, according to the advance estimate.

The expansion primarily reflected a 30.3% plunge in imports, following a 37.9% surge in Q1, when businesses and consumers rushed to stockpile goods ahead of expected price increases following a series of tariff announcements.

Also, consumer spending rose at a faster pace (1.4% vs 0.5% in Q1), led by goods (2.2% vs 0.1%), though it marked the tamest growth in consecutive quarters since the covid pandemic.

Government expenditure rebounded (0.4% vs -0.6%).

Meanwhile, fixed investment slowed (0.4% vs 7.6%), with contractions in investment for structures (-10.3% vs -2.4%) and residential (-4.6% vs -1.3%) and a slowdown seen for equipment (4.8% vs 23.7%).

In addition, exports were down 1.8%, the biggest decline since Q2 2023, compared to a 0.4% rise in Q1.

Private inventories cut 3.17 percentage points from the growth.