WASHINGTON (dpa-AFX) - The U.S. economy grew by more than previously estimated in the second quarter of 2025, according to revised data released by the Commerce Department on Thursday.
The report said real gross domestic product shot up by 3.3 percent in the second quarter compared to the previously reported 3.0 percent surge. Economists had expected the jump in GDP to be upwardly revised to 3.1 percent.
'With GDP running at 3.3%, the economy appears to be on all cylinders, and it should be a boost of confidence to markets that most of the tariff-angst was misplaced earlier this year,' said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management .
He added, 'However, markets have already priced in a September rate cut and it is important that the inflation data remains restrained between now and then.'
The Commerce Department said the stronger than previously estimated growth primarily reflected upward revisions to investment and consumer spending.
The positive revisions were partly offset by a downward revision to government spending and an upward revision to imports, which are a subtraction in the calculation of GDP.
The sharp increase by GDP in the second quarter came following a 0.5 percent decrease in the first quarter, with the rebound primarily reflecting a downturn in imports and an acceleration in consumer spending.
The report also said the jump by the personal consumption expenditures price index in the second quarter was downwardly revised to 2.0 percent from 2.1 percent. The PCE price index spiked by 3.7 percent in the first quarter.
The core PCE price index, which excludes food and energy prices, shot up by an unrevised 2.5 percent in the second quarter after surging by 3.5 percent in the first quarter.
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