US Economy Grew More Than Expected: Data

According to new data reported Wednesday by the Commerce Department, the gross domestic product grew 3% for the April through June period, marking a stronger-than-expected second quarter.

“The word of the summer for the economy is ‘resilient,'” said the Chief Economist at Navy Federal Credit Union, Heather Long, to CNBC. “The consumer is hanging in there, but still on edge until the trade deals are done.”

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Hiring rebounds

On Wednesday, ADP reported that hiring improved at private companies. Payrolls reversed a June loss of 23,000 jobs with a seasonally adjusted 104,000 increase, totaling a 64,000 increase and exceeding Wall Street’s expectations. (June was revised from 33,000.)

ADP chief economist Nela Richardson told CNBC that their data is “broadly indicative of a healthy economy.”

“Employers have grown more optimistic that consumers, the backbone of the economy, will remain resilient,” Richardson said.

Will the Fed cut rates?

EY-Parthenon Chief Economist Gregory Daco expects the Fed will not lower rates at Wednesday’s meeting.

“The Fed will remain on hold at the July FOMC meeting with potential dissents from two governors, but it is likely to signal optionality for a September rate cut given the expected slowdown in labor market momentum in the months ahead,” Daco told Entrepreneur in an email.

Daco said they expect “real GDP growth to slow to just 0.9% year-over-year by Q4 2025.”

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