US economy rebounds a surprisingly strong 3% in the second quarter

The U.S. economy expanded at a surprising 3% annual pace from April through June, bouncing back at least temporarily from a first-quarter drop that reflected disruptions arising from President Donald Trump’s trade wars

Economy Bank Accounts (Copyright 2017 The Associated Press. All rights reserved.)

The U.S. economy expanded at a surprising 3% annual pace from April through June, bouncing back at least temporarily from a first-quarter drop that reflected disruptions from President Donald Trump’s trade wars.

America gross domestic product — the nation’s output of goods and services — rebounded after falling at a 0.5% clip from January through March, the Commerce Department reported Wednesday. The first-quarter drop was mainly caused by a surge in imports — which are subtracted from GDP — as businesses scrambled to bring in foreign goods ahead of Trump’s tariffs.

Economists had expected 2% second-quarter growth.

From April through June, a drop in imports added more than 5 percentage points to growth. Consumer spending came in at a weak 1.4%, though it was an improvement over the first quarter.