---
title: "US Economy Roars Back With 3% Growth, Handing Trump A Timely Victory"
description: "The U.S. economy rebounded with a 3% annualized GDP growth in Q2, surpassing expectations and providing President Trump a timely victory. This growth followed a 0.5% contraction in Q1, driven by a sig"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/250807301.md"
published_at: "2025-07-30T13:09:27.000Z"
---

# US Economy Roars Back With 3% Growth, Handing Trump A Timely Victory

> The U.S. economy rebounded with a 3% annualized GDP growth in Q2, surpassing expectations and providing President Trump a timely victory. This growth followed a 0.5% contraction in Q1, driven by a significant drop in imports and increased consumer spending. The inflation rate also showed improvement, with the core PCE index rising 2.5%. Market reactions included a stronger dollar and rising oil prices, while attention shifts to the Federal Reserve's upcoming policy decisions.

After the sharpest quarterly contraction in three years, the U.S. economy roared back robustly in the second quarter, with gross domestic product rebounding well above expectations—offering President **Donald Trump** a timely economic victory to celebrate.

The U.S. gross domestic product expanded at a 3% annualized pace in the second quarter, after a 0.5% contraction in the previous quarter, according to advance estimates released Thursday by the Bureau of Economic Analysis.

The outcome surpassed economists expectations of a 2.4% growth, and marked the strongest pace of growth since the third quarter of last year.

“3%, way better than expected!” Trump stated on Truth Social. He then seized the moment to ramp up pressure on Fed Chair **Jerome Powell** just hours before the Federal Open Market Committee (FOMC) meeting later in the day.

“Too Late must lower the rate. No Inflation! Let people buy, and refinance, their homes!”

### What Drove The Rebound?

Trade-driven distortions that skewed first-quarter data—caused by a surge in pre-tariff imports—unwound in the second quarter.

The upsurge in GDP was powered primarily by a 30.3% collapse in imports—a reversal of the 37.9% surge seen in Q1 as businesses scrambled to stockpile goods before tariffs kicked in.

Since imports subtract from GDP, the drop provided a significant boost to the quarterly figures.

Consumer spending, the bedrock of the U.S. economy, also showed renewed strength. Real personal consumption expenditures rose 1.4%, up from just 0.5% in the previous quarter.

One of the biggest surprises was the inflation rate. The core Personal Consumption Expenditures index—the Fed's preferred inflation gauge—rose 2.5% quarter-over-quarter, down from 3.5% in the first quarter.

Headline PCE prices slowed sharply from 3.7% to 2.1%.

In a separate release, ADP's July employment report showed private payrolls rebounding strongly, rising by 104,000 after June's 23,000 contraction—easily topping expectations for a 74,000 gain.

### Market Reactions: Dollar Extends Rally, Crude Eyes $70

The U.S. dollar index (DXY) climbed 0.4% Thursday, extending its rally to a fifth consecutive session after stronger-than-expected economic data lifted confidence in the U.S. outlook.

Gold prices dropped as the appetite for safe-haven assets cooled. The **SPDR Gold Trust** GLD fell 0.4% to $3,315 per ounce.

Stock futures pointed to a modestly positive open. S&P 500 contracts were up 0.1% at 6,380, while Nasdaq 100 futures gained 0.2% to 23,358.

Oil extended its rally, with WTI crude rising above $69.50 a barrel—the highest since June 23—buoyed by tightening supply and resilient demand.

Markets will now turn their attention to the Federal Reserve's policy decision later Wednesday, where rates are widely expected to remain steady at 4.25%-4.5%. However, growing speculation points to possible dissent among committee members who favor rate cuts.

Later this week, investors will also digest the June PCE inflation report on Thursday and the July jobs report on Friday—two key data points that could shape the Fed's next steps.

-   **Trump’s Charm Offense In Europe Unleashes Dollar Thunder  
    **

*Photo: Miha Creative via Shutterstock*

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 期权热点｜上周五 NBIS 大涨 9%，部分看涨期权飙升 378% | 美东时间 02 月 13 日，Nebius 期权总成交 179098 张，看涨期权占比 71%，看跌期权占比 28%。 | [Link](https://longbridge.com/en/news/276030151.md) |
| 港股异动：澜起科技涨 15.78%，花旗看好 AI 增长潜力，摩根大通增持助力股价攀升 | 澜起科技涨 15.78%；华虹半导体涨 1.57%，成交额达到 4.31 亿港币；中芯国际跌 0.36%，成交额达到 3.68 亿港币；兆易创新涨 14.27%，成交额达到 2.75 亿港币；豪威集团涨 0.79%，市值达到 1286 亿港 | [Link](https://longbridge.com/en/news/276028521.md) |
| 我国 1 月非石油国内出口上扬 9.3％ \| 联合早报网 | 我国 1 月非石油国内出口（NODX）同比增长 9.3%，延续前一个月的 6.1% 涨势。电子出口强劲增长 56.1%，主要受人工智能需求推动，集成电路、磁盘媒体和电脑零件分别增长 80.5%、70.2% 和 24%。非电子出口下滑 3%， | [Link](https://longbridge.com/en/news/276019535.md) |
| 地中海旅游投资公司全年实现利润 160 万第纳尔 | 地中海旅游投资公司 PSC (MDTR.AM)：地中海旅游投资公司财年归属于股东的净利润为 160 万第纳尔，财年收入为 2000 万第纳尔 | [Link](https://longbridge.com/en/news/275999518.md) |
| Codeifai 进入由 AI 支持的量子安全市场 | Codeifai Ltd：CODEIFAI 进入人工智能支持的量子安全市场，完成对 AntennaTransfer.Io 的收购，总对价为 130 万澳元 | [Link](https://longbridge.com/en/news/276015719.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
