US real gross domestic product (GDP) increased at an annual rate of 3.8 per cent in the second quarter (Q2) this year, according to the third estimate released by the Bureau of Economic Analysis (BEA). In Q1 2025, it decreased by 0.6 per cent, revised estimates show.

The Q2 increase primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports.

US real GDP rose at an annual rate of 3.8 per cent in Q2 2025, to the third estimate released by the Bureau of Economic Analysis.
In Q1 2025, it fell by 0.6 per cent, revised estimates show.
The Q2 rise primarily reflected a drop in imports and a rise in consumer spending.
These movements were partly offset by decreases in investment and exports.
US real gross output rose by 1.2 per cent in Q2 2025.

Real GDP was revised up by 0.5 percentage point (pp) from the second estimate, primarily reflecting an upward revision to consumer spending.

Real final sales to private domestic purchasers—the sum of consumer spending and gross private fixed investment—increased by 2.9 per cent in Q2 2025, revised up by 1 pp from the previous estimate.

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

Real gross output increased by 1.2 per cent in Q2 2025, reflecting increases of 0.6 per cent for private goods-producing industries and 1.7 per cent for private services-producing industries. These were partly offset by a decrease of 0.7 per cent for the government.

The price index for gross domestic purchases increased by 2 per cent in Q2 2025, revised up by 0.2 pp from the previous estimate.

The personal consumption expenditures (PCE) price index increased by 2.1 per cent, revised up by 0.1 pp. Excluding food and energy prices, the PCE price index increased by 2.6 per cent, also revised up by 0.1 pp.

Real gross domestic income (GDI) increased by 3.8 per cent in Q2 2025, revised down by 1 pp from the previous estimate. The average of real GDP and real GDI increased by 3.8 per cent, revised down by 0.2 pp, a BEA release said.

Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $6.8 billion in Q2 2025, a downward revision of $58.7 billion.

Fibre2Fashion News Desk (DS)