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#US #Economy Grew in #Q2 as #Tariffs Scrambled Data

#GDP rebounded in the spring after contracting at the start of the year, but #ConsumerSpending remained weak.

Economic growth softened in the 1st half of the year, as tariffs & #uncertainty upended #business plans & scrambled #consumers’ spending decisions.

nytimes.com/2025/07/30/busines…

#Economy #business #US #GdP #Uncertainty #consumers #tariffs #q2 #consumerspending
in reply to Nonilex

Nonilex
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Nonilex
• •

Disruptions extended to the data itself. #GDP, adjusted for #inflation, increased at a 3% annual rate in #Q2, the #Commerce Dept said Wednesday. On the surface, that appears to represent a strong rebound Q1, when output contracted at a 0.5% rate.

But both those figures were skewed—in opposite directions—by big swings in #trade & inventories caused by #Trump’s ever-shifting #tariffs policies.

#economy

#Economy #Inflation #Trump #trade #GdP #commerce #tariffs #q2
in reply to Nonilex

Nonilex
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Nonilex
• •

Taken as a whole, the data from the first 6 months of the year tell a more consistent story of anemic, though positive, economic growth.

Many forecasters expect a further deterioration in the months ahead, as #tariffs work their way through #SupplyChains, #federal #JobCuts filter
through the #economy & stricter #immigration policies take a toll on industries that rely on foreign-born #workers.

#Trump #inflation #recession #US

#Economy #Inflation #Trump #immigration #US #workers #SupplyChains #federal #récession #tariffs #jobcuts
in reply to Nonilex

Nonilex
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Nonilex
• •
…But the #economy has repeatedly defied such predictions in recent years, & some forecasters believe it could do so again. #Unemployment remains low, measures of #consumer confidence have rebounded, & #tariffs have so far done little to push up prices overall. The tax-&-spending bill passed by #Congress this month could also provide a short-term boost to economic activity, although many #budget experts have warned that it could pose a long-term risk by adding trillions to the #NationalDebt.
#Economy #unemployment #congress #budget #consumer #NationalDebt #tariffs
This entry was edited (4 months ago)
in reply to Nonilex

Nonilex
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Nonilex
• •

…Officials at the #FederalReserve will be weighing those dueling narratives at their meeting on Wednesday. They are widely expected to hold #InterestRates steady, but a flood of economic data this week could help decide whether & when they will cut rates again.

…The #Q2 figures are preliminary & will be revised at least twice in coming months as more complete data becomes available. Those revisions can be significant….

#Trump #inflation #economy #US

#Economy #Inflation #Trump #US #FederalReserve #interestrates #q2
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