US economy shows stronger than expected growth in spring

The US economy grew more strongly than expected in the spring. In the second quarter, gross domestic product (GDP) rose by an annualised 3 percent compared to the previous quarter, according to initial estimates released by the Department of Commerce in Washington on Wednesday.

Economists had on average only expected an increase of 2.6 percent. A moderate increase in consumer spending and a sharp decline in imports supported economic growth. The US economy had shrunk by 0.5 percent in the first quarter.

US President Donald Trump's customs policy plays a decisive role. Imports had risen sharply in the first quarter as many companies stocked up on goods before the tariffs came into effect. The decline in imports in the second quarter now supported growth. In addition, private consumption grew by an annualised 1.4 percent.

"The sharp fluctuations are due to the customs conflict, which has caused distortions in foreign trade," commented Christoph Balz, economist at Commerzbank. "It therefore makes sense to interpret the first half of the year as a whole." The US economy has lost considerable momentum this year, with average quarterly growth of 1.2 percent. "However, we continue to assume that a recession can be avoided," writes Balz.

"US tariffs and the associated more expensive imports will dampen growth in the further course of the year," expects Thomas Gitzel, chief economist at VP Bank. "Private consumer spending will be lower and, due to the uncertainties associated with tariffs, investment growth rates are also unlikely to match those of previous years."

In the US, data on economic growth is annualised, i.e. extrapolated to the full year. It indicates how strongly the economy would grow if the pace were maintained for a year. This method is not used in Europe, which is why the figures are not directly comparable. To arrive at a growth rate comparable with Europe, the US rate would have to be divided by four.

The euro came under further pressure after the data and fell to a daily low of 1.1469 dollars. US government bond prices continued to fall. The Dax did not move sustainably.

This article was translated to English using an AI tool.

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