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U.S. GDP Rebounds In Q2 Amid Sharp Pullback By Imports
(RTTNews) - The Commerce Department released a report on Wednesday showing the U.S. economy rebounded by more than expected in the second quarter of 2025.
The report said real gross domestic product surged by 3.0 percent in the second quarter after falling by 0.5 percent in the first quarter. Economists had expected GDP to jump by 2.5 percent.
The rebound by real GDP in the second quarter primarily reflected a sharp pullback by imports, which are a subtraction in the calculation of GDP. Imports plummeted by 30.3 percent in the second quarter after soaring by 37.9 percent in the first quarter.
An increase in consumer spending also contributed to the surge by GDP in the second quarter, while decreases in investment and exports limited the upside.
"The tariff threats pulled forward consumption in the second quarter," said Eric Teal, Chief Investment Officer for Comerica Wealth Management. "However, we anticipate the benefits from the OBBBA will offset most declines related to higher tariffs."
He added, "We are closely monitoring real rates given the U.S. debt levels and the fact that the full effects of tariff policy have yet to be realized.
The report also said the personal consumption expenditures price index increased by 2.1 percent in the second quarter compared with a 3.7 percent surge in the first quarter.
Excluding food and energy prices, the core PCE price index jumped by 2.5 percent in the second quarter after shooting up by 3.5 percent in the first quarter.
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