Democrats spent the 2024 campaign warning that Donald Trump would wreck the economy. Voters rejected that doomsday pitch and put him back in the White House. Ever since, Democrats have predicted collapse at every turn. In their telling, America was always either on the brink of recession or already in one — all because of Trump. But reality keeps stubbornly getting in the way. Instead of crashing, the economy keeps climbing. The latest Commerce Department report shows second-quarter GDP growth didn’t just top expectations — it crushed them.
On Thursday, the Bureau of Economic Analysis released its third and final estimate of second-quarter growth, and the results blew through the doomsday chatter from the left. The economy expanded at a robust annualized rate of 3.8% from April through June, far above the 3.3% forecast and higher than the initial estimate of 3.0%.
Consumer spending, long a key barometer of economic strength, also came in hotter than analysts had anticipated. Services in particular saw a strong revision upward, led by transportation, financial services, and insurance. Goods spending wasn’t as strong overall, thanks to a downward revision, but Americans still put plenty of money into motor vehicles and parts. For all the media chatter about consumer pessimism, the numbers show just the opposite: Americans are spending, and they’re spending big.
Real final sales to private domestic purchasers, which is the sum of consumer spending and gross fixed private investment, was revised up by 1 percentage point to a gain of 2.9% in the second quarter.
The growth in the second quarter follows a GDP contraction in the first quarter that was revised downward from a contraction of 0.5% to 0.6%, which leaves GDP growth in the first half of 2025 at an annualized rate of about 1.6%.
BEA attributed the upturn in the second quarter to a decrease in imports and an acceleration in consumer spending, which were partly offset by a decline in investment.
The BEA diagnosis was clear: The rebound came from fewer imports, meaning we’re consuming more domestic product, alongside accelerating consumer spending. Yes, business investment and exports slipped, and critics will point to that as a weakness. But the headline growth speaks for itself: The economy is expanding solidly in the face of a hostile media narrative and constant warnings that disaster is just around the corner.
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That difference between media spin and reality is no accident. Democrats have been rooting for decline. They want voters to feel pain so they can pin blame on Trump. They predicted doom during his first term, and they are doing it again now. But just like before, stubborn facts are undermining their narrative. The latest GDP revision isn’t just an economic data point. It’s more evidence in the case that their favorite talking point — Trump’s policies guarantee recession — is collapsing.
And there's even more good news.
New jobless claims fell sharply to 218,000 last week — well below expectations and the lowest level since mid-July. Economists had predicted 235,000, but Trump’s economy once again crushed the forecasts. Even better, continuing claims also declined to 1.926 million, showing that not only are fewer people filing for unemployment, but more are getting back to work.
The reality is this: The American economy under Trump in 2025 is growing, powered by consumers who are proving more resilient than the experts and pundits give them credit for. The "Trump recession" Democrats were counting on just isn't happening.
The left warned of economic collapse under Trump, but reality crushed its fantasy. You can bet that the mainstream media won't credit Trump. But PJ Media will always tell the truth. Support independent conservative journalism — join PJ Media VIP with code FIGHT for 60% off. America deserves the truth!