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US economy grows after swing in imports

US economy grows after swing in imports

Summary

The US economy grew at an annual rate of 3% from April to June, after shrinking earlier in the year. This growth was partly due to a drop in imports caused by new tariffs.

Key Facts

  • The US economy expanded at a 3% annual rate from April to June.
  • This growth came after a decline in the first three months of the year.
  • The increase was larger than expected because of changes in trade.
  • Businesses hurried to import goods early in the year before new tariffs took effect.
  • Imports went down, partially due to President Trump's tariff policy.
  • Imports are subtracted when calculating economic growth.
  • A measure of consumer spending and investment slowed from 1.9% to 1.2%.
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