NEW YORK, July 30 (Xinhua) -- The U.S. economy expanded at an annualized rate of 3 percent in the second quarter, according to data released by the U.S. Commerce Department on Wednesday, surpassing economists' expectations.
The figure marks a sharp rebound from the 0.5-percent contraction seen in the first quarter, which was mainly due to a surge in imports as businesses rushed to stock up on foreign goods ahead of U.S. President Donald Trump's tariffs taking effect.
The turnaround in the second quarter was largely supported by a slump of 30.3 percent in imports, a modest 1.4-percent rise in consumer spending, as well as increased spending by state and local governments.
Despite the strong Q2 figure, growth averaged just 1.25 percent across the first half of 2025, a marked slowdown from the nearly 3-percent pace seen in each of the previous two years.
"We expect the economy to lose more momentum," said Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics. He forecasts GDP growth will slow to just 1 percent annualized in the second half, citing the drag from higher prices on imported goods, the result of lingering tariffs, and business uncertainty surrounding the Trump administration's economic policies as key headwinds.
The GDP report was released just hours before the monetary policy decision by the Federal Open Market Committee (FOMC), which is widely expected to hold its benchmark interest rate steady in the 4.25-4.50-percent range for the seventh consecutive month.
Market participants, as reflected in the CME FedWatch Tool, are largely betting the Fed will maintain its cautious stance amid signs of disinflation and modest growth.
Trump quickly seized on the GDP growth figure, praising it as "way better than expected" in a Truth Social post.
He once again urged the Fed to cut interest rates to support growth, which he has been advocating for months. ■