US economy grows after swing in imports

A sharp drop in imports triggered by President Donald Trump tariff policy helped boost US economic growth between April and June, according to the latest figures.

The world’s largest economy expanded at an annual pace of 3% after shrinking in the first three months of the year, the Commerce Department said.

The bigger-than-expected rebound reflected swings in trade as businesses rushed to get goods into the US at the beginning of the year ahead of Trump’s new taxes.

Imports subtract from official growth calculations but are not necessarily an indication of the health of the wider economy.

Meanwhile, a closely watched gauge of consumer spending and investment – final sales to private domestic purchasers – slowed from 1.9% to 1.2%, the Commerce Department said.