U.S. Posts 3.8 Surge in Q2 GDP Growth

(MENAFN) The Bureau of Economic Analysis reported Thursday that the US economy expanded at a robust 3.8% quarter-on-quarter rate in the second quarter of 2025, surpassing the earlier estimate of 3.3%.

This stronger-than-expected growth was largely driven by a reduction in imports—which are deducted in GDP calculations—and a boost in consumer spending, the agency explained. "These movements were partly offset by decreases in investment and exports," the bureau noted.

The bureau also revised the first quarter GDP contraction deeper to 0.6%, down from previous estimates. The upward revision of 0.5 percentage points for Q2 was mainly due to stronger consumer spending figures.

Real final sales to private domestic purchasers—a measure combining consumer spending and private fixed investment—rose by 2.9% in Q2, representing a full percentage point increase from initial estimates.

"From an industry perspective, the increase in real GDP reflected increases of 10.2% in real value added for private goods-producing industries and 3.5% for private services-producing industries that were partly offset by a decrease of 3.2% in real value added for government," the bureau added.

Price pressures showed moderate increases, with the price index for gross domestic purchases climbing 2%, up 0.2 percentage points from the initial reading.

"The personal consumption expenditures (PCE) price index increased 2.1%, revised up 0.1 percentage point. Excluding food and energy prices, the PCE price index increased 2.6%, also revised up 0.1 percentage point," the bureau stated.

This data highlights continued economic resilience amid mixed signals on investment and government output, with inflation showing moderate upward revisions.

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