US economy grows 3.3% in second quarter, government says, in second estimate of April-June growth
By: Yahoo Finance
Good times.............
S E E D E D C O N T E N T
PAUL WISEMAN Thu, Aug 28, 2025, 8:38 AM 3 min read
WASHINGTON (AP) — The U.S. economy rebounded this spring from a first-quarter downturn due to fallout from President Donald Trump's trade wars.
In an upgrade from its first estimate in July, the Commerce Department said Thursday that U.S. 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 U.S. 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.
Even with an upward revision, private investment dropped at a 13.8% annual pace from April through June. That would be biggest drop since the second quarter of 2020 at the height of the coronavirus pandemic. A reduction in private inventories cut almost 3.3 percentage points off second-quarter GDP growth.
Spending and investment by the federal government fell at a 4.7% annual clip on top of a 4.6% drop in the first quarter.
A category within the GDP data that measures the economy's underlying strength came in stronger than first reported, growing 1.9% from April-June, same as in the first quarter. This category includes consumer spending and private investment, but excludes volatile items like exports, inventories and government spending.
Since returning to the White House, Trump has overturned decades of U.S. policy that had favored freer trade. He's slapped double-digit taxes on imports from almost every country on earth and targeted specific products for tariffs, too, including steel, aluminum and autos.
Trump sees tariffs as a way to protect American industry, lure factories back to the United States and to help pay for the massive tax cuts he signed into law July 4.
But mainstream economists — viewed with disdain by Trump and his advisers — say that his tariffs will damage the economy, raising costs and making protected U.S. companies less efficient. They note that tariffs are paid by importers in the United States, who try to pass along the cost to their customers via higher prices. Therefore, tariffs can be inflationary — though their impact so far has been modest.
Story Continues
The erratic way Trump has imposed the tariffs — announcing and suspending them, then coming up with new ones — has left businesses bewildered and uncertain about investments and hiring.
Heather Long, chief economist at Navy Federal Credit Union, said the resilience of the job market — the government also reported Thursday that fewer people applied last week for unemployment benefits — is "giving people confidence to open their wallets for the basics and some little splurges.'' But she expected the economy to stay in a "slower speed mode with spending and growth around 1.5% as the tariffs become more visible to American consumers."
Trolling, taunting, spamming, and off-topic comments may be removed at the discretion of group mods. NT members that vote up their own comments, repeat comments, respond to themselves, or continue to disrupt the conversation risk having all their comments deleted. Please remember to quote the person(s) you are replying to preserve the continuity of this seed. Posting debunked lies will be subject to deletion
No Fascism References, Memes, Source Dissing.
Tags
Who is online
94 visitors
More good news. Will it ever stop? hehehe
Are you getting tired of winning LOL
I was hoping for 4% but I'll take it!
Isnt that Howard Nutlick? Who'd believe a word he says ?
Says the guy that believed all of the jobs reports during the Biden years, and ignored the huge revision of 800,000 down after Biden left office.
Do you have a source for this? I’ve never been able to find one, and I’ve looked. The only revision of that size I have found happened 2 1/2 months before the election , not after.
Oh, so you aren't denying it happened or that it benefited Biden. Got it.
For those who are now confused:
U.S. Says Labor Market Growth Overestimated By 818,000 Jobs
Then the Democrats cried when this Biden administration hold over was terminated for screwing up the numbers.
OK I misspoke, but what does it matter.
The Biden admin tried to mislead the American people, but that certainly wasn't the first time.
Tried to mislead? They lied to the American people from day 1.
I don’t blame you for misspeaking at all. Trump is the one who keeps saying this massive revision happened after the election. He has said it so many times, people assume the underlying “facts” are true. i.e., that the revision happened after the election.
I don’t expect people to remember labor reports, or revisions, from last week, much less from last year. And neither does Trump. If anything, he’s counting on it. Or someone else came up with this fib, and he believes it as readily as anyone else.
The thing is, no one ever checks it out. Regular folks aren’t going to Google “when did the labor bureau issue a revision of 800,000?”
So Trump talks about this event like the numbers were artificially inflated during the campaign, but only after the election did the real numbers come out. In fact, the revised numbers came out months before the election. So, if they were going to hurt anyone, it would have been Biden or Harris. This was in August. So if anyone benefitted, it was Trump.
But again, I don’t think enough people pay attention to this stuff for it to matter. How many people changed their vote based on the BLS revision? You could probably count them on one hand.
The left have become pretty good at predicting the future. Everything they told us would happen, has had the exact opposite result.
So, to our left leaning friends, what is he going to destroy this week?
Right now, they are defending Urban crime.
Let them do it. There is an election coming.
These numbers we believe, right? Nobody is getting fired?