US Q2 GDP Surges to 3%: Consumer Spending and Trade Shift Drive Growth

This Report Marks A Reversal from Q1’s 0.5% Decline, WHICH HAD BEEN WEGhed Down By A spike in Imports and Weaker House Hold Consumption Linked to Tariff Uncertain.

Imports Fall As Tariff Impact Shifts, Lifting GDP The MOST SIGNFICANT Contribute to the Q2 Rebound Was A Drop in Imports, WHICH SUBTRACT FROM GDP Calculations. In Q1, Businesses Accelerated Imports in Anticipation of Tariff Hikes Following President Trump’s April 2 Tariff Declaration. That Front-Loaded Activity Reversed in Q2, EASING PRESSURE ON GDP. While Overall Investment and Exports Decklined During the Quarter, the Drag Was More Than Offset by the Reduction in Import Volume.

Consumer Spending Recovery Buoys Domestic Demand Consumer Spending, Whosh Had Been Subdored Earlier in The Year, Gained TRACTION IN Q2, Rising 1.4% Compared to Just 0.5% in Q1. This Improvement Signals A Moderate Recovery in Domestic Demand, Thought The Pace Remains Below Historical Aves.

Real Final Sales to Private Domestic Purchasers – A Key Gauge of Private Sector Strengt – Grew Just 1.2%, Slowing from 1.9% in Q1, Suggesting the Priest Investment Remains CAULESS CAULES.

Cooling Inflation Offers Additional Support PRICE MEASURES IN Q2 Also Showed A Pullback in Inflation.

The Gross Domestic Purchases Price Index Rose 1.9%, Down from 3.4% in Q1. The PCE Price Index Increased 2.1%, and the CORE PCE, Excluding Food and Energy, Rose 2.5%—Both Figures Lower than Their Prior Quarter Levels.