US economy grows 3.3% in second quarter

The US economy rebounded this spring from a first-quarter downturn due to fallout from President Donald Trump's trade wars.

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In an upgrade from its first estimate in July, the Commerce Department said on Thursday that US gross domestic product - the nation’s output of goods and services - expanded at a 3.3% annual pace from April through June after shrinking 0.5% in the first three months of 2025. The department had initially estimated second-quarter growth at 3%.

The first-quarter GDP drop, the first retreat of the US economy in three years, 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. That trend reversed as expected in the second quarter: Imports fell at a 29.8% pace, boosting April-June growth by more than 5 percentage points.

The Commerce Department reported that consumer spending and private investment were a bit stronger in the second quarter than it had first estimated.

Consumer spending, which accounts for about 70% of GDP, grew at a 1.6% annual pace, lackluster but better than 0.5% in the first quarter and the 1.4% the government initially estimated for the second.