U.S. Q2 GDP Revised Up to 3.3% in Second Estimate

Washington, D.C., August 28, 2025 - The U.S. Bureau of Economic Analysis (BEA) today released its second estimate for second-quarter gross domestic product (GDP), reporting that real GDP grew at an annual rate of 3.3 percent, up from the advance estimate of 3.0 percent.

In the detailed breakdown, the upward revision of 0.3 percentage point primarily reflected stronger-than-initially-estimated increases in consumer spending and business investment, partially offset by a downward adjustment to government outlays and a modest upward revision to imports. Corporate profits (preliminary) also rose, following a downturn in the first quarter.

According to the BEA’s release:

• Real GDP increased 3.3 percent in Q2 2025, compared with a 0.5 percent contraction in Q1.
• Consumer spending accelerated, driven by spending on both goods and services.
• Business investment was revised higher, reflecting stronger equipment and intellectual property outlays.
• Imports ticked up, subtracting from overall GDP but less than anticipated.

The Commerce Department’s data showed that consumer spending, which accounts for roughly 70 percent of GDP, expanded at a 1.6 percent annual pace in the quarter-an improvement over the 0.5 percent growth in Q1. Trade also provided a significant boost, as a sharp decline in imports after first-quarter tariff-induced front-loading contributed over five percentage points to quarterly growth.

Market reaction was muted. S&P 500 futures ticked higher on the view that the stronger growth figure, coupled with a modest downward revision to inflation measures in today’s report, may give the Federal Reserve room to consider pausing its tightening cycle later this year.

The BEA’s next release, covering the third estimate of Q2 GDP along with GDP by industry and revised corporate profits, is scheduled for September 25, 2025.