U.S. economy grew 3.3% in Q2; growth was stronger than initially thought
On Tuesday, July 15, 2025, a shopping person holds Macy’s bags outside the company’s flagship store in the Herald Square neighborhood of New York.
Alan Chin | Bloomberg | Getty Images
The US economy grew faster than the speed of thought in the second quarter as consumers and businesses stood against tariff volatility.
Gross domestic product The Ministry of Commerce rose at a rate of 3.3% annually during the April-June period. Reading was better than the first 3.0% estimation as well as consensus estimation of 3.1%.
Consumer expenditures helped the number higher than a 1.4% estimation.
Importantly, a measure called the final sales to private domestic buyers increased by 1.9%than the previous 1.2%. Federal reserve officials follow this mistress as an indicator of demands and sales focusing on the activities within us, which is particularly important, considering the uncertain effect of President Donald Trump’s tariffs.
The GDP number reflected the unusual effect of tariffs regarding the trade numbers.
The imported from GDP fell by 29.8% in the quarter after the stock of companies before the announcement of Trump’s April 2 “Liberation Day”. The figure was slightly less than previous estimates.
At the same time, the exports added to GDP fell 1.3%compared to the previous estimate of -1.8%. Bringing the figures together, the net export quarter to the total of approximately 5 percent of points.
For the first half of the year, GDP has grown about 2.1% per quarter or more than 1% on average. The economy is largely 0.5% contract in the first quarter due to the impact of imports.
“Good news, consumption was higher than before. Americans continue to spend despite the tariffs and uncertainty, albeit at a slower speed than previous years,” heather Long, Chief Economist of the Federal Credit Association. He said. “In the future, as tariffs become more visible for American consumers, the economy is likely to remain around 1.5% of spending and growth in this slower speed mode.”
According to Atlanta Fed’s, mostly with the first month data in books, the economy grows at 2.2% in the third quarter. Gdpnow measurement.
Inflation forecasts have changed little from the first reading. The basic personal consumption expenditures that excludes variable food and energy categories increased by 2.5%than the previous figure, while the PCE Price Index rose to 2%in accordance with the Fed’s inflation target.
