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US GDP expanded by 3.0% in the second quarter of 2025 blowing past forecasts of 2.4%.
Q2’s numbers mark a stark rebound from Q1’s 0.5% contraction.
Isaac Stell, Investment Manager at Wealth Club said, “After stumbling in the first quarter, the US economy appears to have regained its footing with 3.0% annualised growth in Q2 2025.
The first-quarter contraction of 0.5%, the first in three years, was driven by a surge in imports as businesses and consumers rushed to stockpile goods ahead of anticipated price increases following tariff announcements. The second quarter saw a reversal of this trend and an increase in consumer spending. The increase in consumer spending was reflective across both goods and services, demonstrating the US consumer remains in rude health.
The strength in these numbers likely puts to bed the possibility of a rate cut from the Fed who are due to meet later today. The market also believes this to be the case with the dollar and treasury yields rising on the news.
Despite continuing public pressure from President Trump, Powell and co are likely to rebuff requests for rate cuts and keep a steady footing whilst the economy shows no clear signs of tripping up.
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