The U.S. economy grew faster than first reported in the second quarter, with GDP rising at a 3.3% annualized rate between April and June, according to the Commerce Department. The earlier estimate had placed growth at 3%.
Consumer spending, which makes up two-thirds of the economy, was revised upward to a 1.6% annualized rate, from 1.4%. Business investment saw the largest change, rising 5.7% compared to the earlier 1.9% estimate. Much of that increase came from intellectual property products.
The US economy expanded in the second quarter at a slightly faster pace than initially estimated on a pickup in business investment and an outsize boost from trade. https://t.co/uRnhT1lOfM
— Bloomberg (@business) August 28, 2025
The revised figures mark a sharp rebound from the 0.5% decline in the first quarter, despite concerns over President Donald Trump’s trade policies.
Still, analysts warn that momentum is fading. “We expect to see sub-1% GDP growth in the second half of the year,” Nationwide economist Oren Klachkin said, citing a weaker labor market and tariff-driven inflation as challenges.
