US U.S. economy returns to growth in second quarter on trade swings - Whaaat? How did Hitler do this?

The U.S. economy grew at an annualized 3% rate in the second quarter, the Commerce Department said on Wednesday.
Why it matters: America's economy is growing again, as the import surge that depressed GDP in early 2025 reverses.

• Under the hood, consumer spending picked up — but business investment slowed notably, as President Trump's trade war weighs on the economy.
• Wednesday's report follows a weak first quarter, when the economy contracted at an annual rate of 0.5%, weighed down by historic importing activity as businesses sought to get ahead of tariffs.

By the numbers: The Commerce Department said that the GDP rebound primarily reflected a decrease in imports.

• Imports are a subtraction in the calculation of GDP. When imports surge, it pulls down the headline figure. The opposite happens when they plunge.
• For instance, the reversal in imports contributed more than 5 percentage points to the headline growth in the second quarter, after subtracting roughly 4 percentage points from the prior quarter's report.

Details: Personal consumption expenditures, a measure of consumer spending, rose at an annualized 1.4% rate — picking up from the 0.5% in the first quarter.

• But non-residential fixed investment — spending by businesses on buildings, equipment or technology — increased 1.9%, compared to the roughly 10% in the prior period.

The intrigue: For a snapshot of underlying growth, economists look at a narrow GDP measure that sums up consumer and business spending — and strips out volatile categories like trade and inventories.

• Final sales to private domestic purchasers, adjusted for inflation, rose at a 1.2% annualized rate, slowing from the 1.9% pace in the first quarter.

The bottom line: Look beyond the trade-distorted headline. The U.S. economy shows some signs of weakness in the second quarter as tariffs took effect.

• What to watch: In recent days, Trump has announced trade frameworks with a 15% tariff baseline, which economists warn might crimp economic growth in the months ahead.

Source(Archive)

 

[Cryborg 1987]

Yes, the GDP has gone up, but the amount of panicans and economically illiterate retards telling me I voted for the wrong person has been reduced significantly. At this point it's just 40-year-old "men" crying about their toys collectibles becoming "unaffordable", even those with terminal TDS just shake their heads and go back to hating on Sydney Sweeney.

 

[Fapcop]

Probably has more to do with all the money the BBB blew into the economy, than anything else.

 

[Mister Fister]

Yes, the GDP has gone up, but the amount of Panicans and economically illiterate retards telling me I voted for the wrong person have been relegated to 40-year-old men upset their toys are more expensive.

They care more about their slave labor,chinkslop and magic stock number than anything else. They are faggots and nerds and on the moon nerds get their pants pulled down and spanked by moonrocks.

 

[Your Starter for 10]

Biden and Kamala's policies finally kicking in.

 

[The best and greatest]

Probably has more to do with all the money the BBB blew into the economy, than anything else.

So great is your determination to avoid giving cheeto a W that if all else fails you'll content yourself by giving him a smaller w instead

 

[mlanguishi]

Redditors and DU are ranting fake news, after they said there was almost no inflation during biden..

 

[Irene and 22 others]

Probably has more to do with all the money the BBB blew into the economy, than anything else.

The BBB wasn't signed until after the second quarter ended, so I'm not sure how it would be responsible at all.

 

[Fapcop]

The BBB wasn't signed until after the second quarter ended, so I'm not sure how it would be responsible at all.

Irrelevant. Shares are high because they’re downsizing, and because all the spending in the BBB was baked in to the prices.

So great is your determination to avoid giving cheeto a W that if all else fails you'll content yourself by giving him a smaller w instead

Hey, I’ll be happy to give big Don a W when he deserves it. Like some of the tariffs. But let’s be real: How is pumping money into the economy through huge deficits any different from Biden did?

I thought a 700 billion dollar Pentagon budget and tens of billions for Ukraine and Israel was retarded under Biden.

An almost trillion dollar Pentagon budget and more billions for Ukraine and Israel doesn’t get any less retarded just because Trump is in charge.

 

[The best and greatest]

How is pumping money into the economy through huge deficits any different from Biden did?

The distinction is where that money ultimately goes.

 

[Ughubughughughughughghlug]

Hey, I’ll be happy to give big Don a W when he deserves it. Like some of the tariffs. But let’s be real: How is pumping money into the economy through huge deficits any different from Biden did?

because Donnie is a Red Man and Biden is a Blue Man. See, if it was the other way around, then there’d be a problem. Economics is only real when it agrees with what Red Man says.

If you’re a Blue Man just reverse it.

 

[Easy J]

Probably has more to do with all the money the BBB blew into the economy, than anything else.

It's too early for Trump's Big Beautiful Bill to be kicking in.

 

[Green_Pine_Tree]

How is pumping money into the economy through huge deficits any different from Biden did?

This is just bog-standard fiscal policy at this point. The national debt will never be lowered.

 

[Fapcop]

This is just bog-standard fiscal policy at this point. The national debt will never be lowered.

It’s like the entire USG has never had a credit card.

It SHOULD be lowered. America already spends a trillion dollar a year just on interest on debts.

 

[The Nothingness]

"Umm ackchyually, it's Bidenomics "

 

[Captain Ahab]

EU: “That’s great. I’m happy for you.”

 

[Angry Alt Right Nerd]

The US economy was great during Biden's presidency too but everyone kept telling me the experts were gaslighting us all

 

[Soyjak Enjoyer]

Now compare to the value of the dollar

 

[George Lucas]

Irrelevant. Shares are high because they’re downsizing, and because all the spending in the BBB was baked in to the prices.

GDP doesn’t measure share prices you fucking retard. It’s a measure on how much product a country produces in a given time period.

 

[FlappyBat]

Now compare to the value of the dollar

Inflation across the last year is 2.67%.