New Delhi, July 30 -- The US economy grew at a surprising 3% annual rate, rebounding from a 0.5% contraction in Q1. However, the Commerce Department report revealed underlying weaknesses, consumer spending grew just 1.4% while business investment plummeted 15.6%, the steepest drop since COVID-19, as per CNBC.

The growth spike came mainly from plunging imports (which boost GDP calculations) as companies avoided Donald Trump's new tariffs, according to a CNBC report.

Q2's import collapse, the sharpest since pandemic lockdowns, artificially added 5 percentage points to GDP. Businesses had rushed to import goods before Trump's tariffs took effect in Q1, causing that quarter's decline.

Now, inventory drawdowns cut 3.2 points from Q2 growth....