Real GDP grows by 3.3% in second quarter, up from early data

The U.S. economy saw growth in newly released second quarter data after a first quarter report showed the economy in decline as consumers and businesses continue to respond to Trump’s global trade war.

Real gross domestic product rose at an annual rate of 3.3% in the second quarter of this year — accounting for April, May, and June — according to the U.S. Bureau of Economic Analysis’ second estimate of the quarter released Thursday.

An advance estimate of the quarterly data said real GDP was up 3%, 0.3 percentage points lower than the most recent data report. BEA said the updated rate reflects increases to investments, imports, and consumer spending and a decrease in government spending that wasn’t previously included.

In the first quarter of 2025 — which measures economic activity in January, February, and March — real GDP decreased 0.5 percent, the first time it had fallen since early 2022.

GDP measures the value of goods and services made in the U.S., the BEA says. Imports are subtracted from GDP’s calculation. Real GDP is the same economic measure without inflation impacts.

GDP’s growth rate is an indicator of how the U.S. economy — and often the global economy — are doing typically per quarter.

BEA said last quarter’s increase shows a decrease in imports plus an increase in consumer spending. It added this was partly offset by a decrease in investments and exports.

This newly released data reflects part of the impact from President Donald Trump’s trade policies. In April, the president slapped global tariffs on imports into the U.S. that have since risen for some countries.

The first quarter saw a rush of imports to get ahead of Trump’s impending tariffs, and this last quarter showed the slow down of imports as tariffs set in, which was expected, the Associated Press reported.

Real final sales to private domestic purchasers, a measure of the total sum of consumer spending and gross private fixed investments, rose 1.9% last quarter — a 0.7 percentage point uptick from the advanced estimate. Plus the GDP price index jumped 1.8%, a 0.1 decrease from earlier data, and the personal consumption expenditures price index (excluding food and energy costs) went up 2.5%.

Real gross domestic income went up 4.8%. Production profits went up $65.5 billion — in the first quarter it dropped $90.6 billion.

Major stock markets are all up Thursday.

View Comments