US Economy Expands at a More Moderate Pace So Far This Year

US economic growth moderated through the first half of the year as consumers tempered their spending after a late-2024 splurge and companies adjusted to frequently shifting trade policy.

Inflation-adjusted gross domestic product, which measures the value of goods and services produced in the US, increased an annualized 3% in the second quarter, according to preliminary government data out Wednesday. As solid as the pace was, economic growth averaged 1.25% in the first half, a percentage point cooler than the pace for 2024.

Beyond the recent tariff-related swings in trade and inventories, second-quarter economic activity slowed. Consumer spending ...