The U.S. economy grew faster than first reported this spring, driven by stronger consumer spending and increased business investment, revised government data show.
Gross domestic product grew at a 3.3 percent annual rate in the second quarter, up from the Commerce Department’s initial 3.0 percent estimate and above the 3.1 percent pace economists had expected. The pickup followed modest growth in the first quarter.
White House officials hailed the news. “Unemployment is holding steady and more than two million net jobs for native-born Americans has been key under your leadership. 84% of the workforce and jobs has been produced by the private sector… [The One Big Beautiful Bill] is protecting our American workforce by expanding Pell Grants and childcare and a reduction in taxes,” said Secretary of Labor Lori Chavez-DeRemer.
“You’ve led an opportunity for us to have lower taxes, way lower deregulation, record amounts of investments that’s coming into this country, we’re going to be seeing lower interest rates,” Interior Secretary Doug Bergum said of Trump. “All of those things coming together is a gift to the working people. The policies are lifting everybody up.”
U.S. Trade Representative Jameison Greer told Trump during a Cabinet meeting this week: “In the last quarter of 2024, median weekly earnings fell 2.1%. In the first quarter of your term, they went up 3.3% — and that’s why we’re doing the trade policy we’re doing. It’s to help the workers of the United States.”
The revision reflected stronger household spending on health care, pharmaceuticals, and dining out, alongside increased business investment in software, research and development, light trucks, and commercial buildings. Purchases of equipment and intellectual property also contributed.
Trade flows added to growth as imports fell after surging earlier in the year ahead of new tariffs. Exports declined, but not enough to offset the boost from fewer foreign goods entering the country. A key measure of underlying demand—real final sales to private domestic purchasers—rose at a 1.9 percent rate, up from 1.2 percent previously.
Inflation pressures remained contained. The personal-consumption expenditures price index, the Federal Reserve’s preferred gauge, increased at a 2.0 percent annual rate, in line with the Fed’s target. Core PCE, which excludes food and energy, rose at a 2.5 percent pace.
