The US economy grew at a faster pace in the second quarter of 2025 than previously estimated, reflecting stronger consumer spending, a boost from trade, and increased business investment.
The US Bureau of Economic Analysis (BEA) reported Thursday that inflation-adjusted gross domestic product (GDP) rose at an annualized rate of 3.3% from April through June, up from the initial estimate of 3%. This followed a 0.5% drop in Q1.
Consumer spending, which makes up about two-thirds of the economy, was revised up to a 1.6% increase.
Business investment jumped 5.7%, led by spending on intellectual property products.
A decline in imports also boosted GDP, while government spending and exports fell.
Private investment dropped 13.8%, the largest decline since mid-2020.
Prices rose moderately, with the PCE price index up 2.0% and core PCE (excluding food and energy) at 2.5%.
Corporate profits rebounded $65.5 billion after a first-quarter drop.
Real gross domestic income climbed 4.8%, bringing the average of GDP and GDI growth to 4%.
Economists have warned that growth may slow later in 2025 due to trade tariffs, high interest rates, and policy uncertainty.