U.S. Q2 GDP Revised Up 3.8%; Trade Boost

The Commerce Department's final BEA estimate showed U.S. GDP rose at a 3.8% annualized rate in Q2 (April–June), an upward revision from 3.3% and a rebound from a 0.6% first‑quarter contraction. The upgrade reflected a bigger‑than‑expected rise in consumer spending, which accelerated to a 2.5% pace, and was supported in part by businesses boosting investment in intellectual property. A sharp swing in trade — imports plunged after firms front‑loaded purchases ahead of President Trump's tariffs — subtracted far less from GDP and contributed more than five percentage points to the quarterly growth figure, making the readings unusually volatile. While the firmer data underscore spring resilience and could blunt pressure for additional Federal Reserve rate cuts after last week’s quarter‑point reduction, recent labor data show slowing hiring and downward revisions to payrolls. Economists caution the headline gain is partly mechanical, that tariffs risk higher prices and uncertainty, and many expect growth to cool in the second half toward roughly 1.5%.