US GDP grew at a 3.3% annualized pace last quarter, according to the government’s second estimate released Thursday. That’s a bump up from the 3.0% from its first estimate, and also higher than the 3.1% forecast.
The GDP growth comes after the US economy shrank at a 0.5% annualized pace in the first quarter.
The Bureau of Economic Analysis, which tracks GDP, said the Q2 bump “primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending.”
President Trump’s tariffs have upended the economic landscape, with imports surging — thus subtracting from GDP — in Q1 as businesses and consumers attempted to “front-run” tariff-related price increases.
In other economic data, initial jobless claims fell slightly from last week, coming in at 229,000 compared to 234,000 the week prior. As layoffs remained low, however, hiring also is staying tepid.