The U.S. economy is growing again, helped by trade swings and American consumers who keep spending. There are also signs of caution.
The Commerce Department said U.S. gross domestic product—the value of all goods and services produced across the economy—rose at a seasonally and inflation adjusted 3% annual rate in the second quarter. That is up from a 0.5% contraction in the first quarter.
Taken together, the two quarters show an economy that is growing, but more slowly. GDP grew at an average annual rate of 1.2% in the first six months this year, a step down from the 2.5% average pace in 2024.
Both quarters this year were heavily influenced by swings in trade as businesses tried to navigate tariff threats and trade deals from the White House.
“Businesses are very cautious—they don’t know the road map and so they’re driving in the right lane very slowly,” said U.S. Bank chief economist Beth Ann Bovino.
US economy rebounds a surprisingly strong 3% in the second quarter https://t.co/vJqYzkFiUY
— O.C. Register (@ocregister) July 30, 2025