US Real GDP Grew at an Annual Rate of 3.3 Percent in the Second Quarter of 2025

Government data released on Thursday showed that US real gross domestic product (GDP) increased at an annual rate of 3.3 percent in the second quarter of this year, amid the US administration's efforts to revive the economy and generate additional revenue from tariff duties.

In a statement, the Bureau of Economic Analysis (BEA) of the US Department of Commerce said that real GDP "increased at an annual rate of 3.3 percent in the second quarter of 2025 (April, May, and June), according to the bureau's second estimate. In the first quarter, real GDP had decreased by 0.5 percent."

The bureau attributed the "increase in real GDP in the second quarter primarily to a decrease in imports (which are subtracted in the calculation of GDP) and an increase in consumer spending. These changes were partly offset by a decrease in investment and exports."

It reported that "the increase in real GDP was revised up 0.3 percentage points from the prior estimates. This upward revision primarily reflected upward revisions to investment and consumer spending that were partly offset by a downward revision to government spending and an upward revision to imports."

Compared to the first quarter, "the acceleration in real GDP in the second quarter primarily reflected a downturn in imports and an acceleration in consumer spending that were partly offset by a downturn in investment," according to the BEA's data.

According to the bureau's data, real final sales to private domestic purchasers—the sum of consumer spending and gross private fixed investment—increased 1.9 percent in the second quarter, revised up 0.7 percentage points from the previous estimate.

The gross domestic purchases price index increased 1.8 percent in the second quarter, "revised down 0.1 percentage point from the prior estimate. The personal consumption expenditures (PCE) price index increased 2.0 percent, revised down 0.1 percentage point. Excluding food and energy prices, the PCE price index increased 2.5 percent, the same as previously estimated."

Real gross domestic income (GDI) increased 4.8 percent in the second quarter, compared with an increase of 0.2 percent in the first quarter. The average of real GDP and real GDI increased 4.0 percent, compared with a decrease of 0.1 percent in the first quarter.

The bureau pointed to an "increase in profits from current production (corporate profits with inventory valuation and capital consumption adjustments) of $65.5 billion in the second quarter, in contrast to a decrease of $90.6 billion in the first quarter" of this year.