The Globe and Mail reports in its Thursday, July 31, edition that U.S. economic growth exceeded expectations in the second quarter, but this was largely due to declining imports, while domestic demand increased at its slowest rate in 2.5 years. A Reuters dispatch to The Globe reports that the Commerce Department's GDP report indicated a slowdown in activity despite strong overall growth. Consumer spending grew moderately and business investment in equipment sharply declined after previous double-digit growth. Residential investment contracted for a second consecutive quarter, with trade policy uncertainty hindering long-term business planning and impacting hiring and consumer spending. FWDBONDS economist Christopher Rupkey says: "The economy is not in a recession is the good news. The bad news is that this is not a report of robust growth which would make one confident about the economic outlook for the second half of 2025." Gross domestic product increased at a 3-per-cent annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said. The economy contracted at a 0.5-per-cent pace in the January-March quarter, the first GDP decline in three years.