U.S. Q2 Growth Boosted by Falling Imports, Masking Domestic Weakness

U.S. economic growth rebounded strongly in the second quarter, growing at a 3.0% annual rate, but this improvement hides some weaknesses.

The main boost came from a sharp drop in imports, which reduced the trade deficit, while domestic demand grew at its slowest pace in over two years.

Consumer spending rose moderately, but business investment slowed, and homebuilding declined for a second straight quarter. Trade uncertainties and tariffs continue to weigh on the economy.