The U.S. economy grew at a 3.0% annualised pace in the second quarter, according to the Commerce Department’s advance estimate. The rebound exceeded economists’ median projection of about 2.5% and followed a 0.5% contraction in the first three months of 2025, signalling that activity regained momentum after a tariff-related setback early in the year. A steep drop in imports provided the largest boost to headline growth, offsetting slower domestic momentum. Consumer spending, which accounts for roughly two-thirds of output, rose 1.4%, down from the first-quarter clip yet still supportive. Final sales to private domestic purchasers—a gauge of underlying demand—advanced a modest 1.2%, while business investment cooled. Price pressures eased. The GDP price index increased 2.0% and the Fed’s preferred core PCE measure rose 2.5%, both slightly below prior-quarter rates and close to the central bank’s 2% objective. The data come ahead of the Federal Reserve’s policy decision later today, with investors weighing whether moderating inflation and solid, but not overheating, demand leave scope for rate cuts as soon as September. Trade frictions remain a wildcard. The report shows growth continuing despite the 145% tariff on Chinese goods introduced in April and a broader escalation of duties on multiple partners. Economists cautioned that the boost from falling imports may prove temporary if households and firms rebuild inventories in coming quarters.