U.S. economy grew more than expected in the second quarter, at a 3.8% pace

The U.S. economy showed surprising strength this spring, expanding at a 3.8% annual pace after an earlier report pegged growth much lower. Consumer spending proved far stronger than expected, while a sharp drop in imports gave GDP a boost. The rebound follows a first-quarter contraction tied to President Trump’s trade policies, which have injected both volatility and uncertainty into the outlook. With hiring slowing and the Fed weighing further rate cuts, the latest data offers a complicated snapshot of resilience amid headwinds.