US GDP Growth Rate Revised Sharply Higher

2025-09-25 12:33 By Joana Taborda 1 min. read

The US economy expanded an annualized 3.8% in Q2 2025, much higher than 3.3% in the second estimate, and marking the strongest performance since Q3 2023.

The stronger-than-anticipated figure primarily reflected an upward revision to consumer spending.

PCE rose 2.5% (vs 1.6% in the second estimate), led by a bigger revision for services (2.6% vs 1.2%) while spending on goods remained robust (2.2% vs 2.4%).

Fixed investment was also revised higher (4.4% vs 3.3% in the second estimate), including equipment (8.5% vs 7.4%), intellectual property products (15% vs 12.8%) and structures (-7.5% vs -8.9%).

Residential investment however, fell more (-5.1% vs -4.7%).

Also, government consumption shrank slightly less (-0.1% vs -0.2%).

On the other hand, the contribution from net trade was revised lower, as exports declined at a faster pace (-1.8% vs -1.3%) and imports fell 29.3% (vs -29.8%).

In addition, the drag from private inventories worsened (-3.44 pp vs -3.29 pp).



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