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The US economy intensified in the second quarter as the Commerce Department released its second amendment real GDP (GDP) Increase for the latest quarter.
The Bureau of Economic Analysis (BEA) released its third and final estimate of the second quarter GDP on Thursday, showing that the economy grew at an annual rate of 3.8% through the June period in April.
The figure was hot compared to the 3.3% estimate of economists voted by LSEG, and more than 3% came from the GDP estimate of the initial second quarter of the Department of Commerce.
The BEA reported that the GDP in the second quarter shows “mainly reflects the reduction in imports, a subsequence in the calculation of GDP, and an increase in consumer spending. These movements were partially offset by investment and reduction in exports.”
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The US economy grew rapidly at the expected pace in the second quarter. (David L. Ryan / The Boston Globe Getty Image / Getty Image)
The amendment of an increase of 0.5 percent in the second quarter growth from the second estimate of BE is mainly stems from the high consumer expenses already reported.
The agency reported that consumer expenditure on services was revised and partially offset by amendment for the purchase of goods. The biggest contribution in spending on services was transport, financial services and insurance. The main contributors to spend the goods were motor vehicles and parts.
The real final sales for private domestic buyers, which is the sum of consumer expenses and gross fixed private investment, was revised up to 1 per cent for a profit of 2.9% in the second quarter.
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The increase in the second quarter follows a GDP contraction in the first quarter that was modified below the contraction of 0.5% to 0.6%, which leaves GDP growth At an annual rate of about 1.6%in the first half of 2025.
The BE attributed the reduction in imports in the second quarter and the upturn for acceleration in consumer spending, partially offset by the fall in investment.
This is a developing story. Please check back for updates.
