U.S. economy grew 3.3% in Q2; growth was stronger than initially thought

The U.S. economy grew at a pace that was faster than expected in the second quarter as consumers and businesses held up against tariff volatility.

Gross domestic product rose at a 3.3% annualized pace in the April-through-June period, the Commerce Department reported Thursday in its second estimate for the most encompassing measure of economic activity. The reading was better than an initial 3.0% estimate as well as the 3.1% Dow Jones consensus forecast.

Consumer spending, which rose by 1.6% compared with an initial 1.4% estimate, helped push the number higher.

Importantly, a measure called final sales to private domestic purchasers jumped 1.9%, up from the previous figure of 1.2%. Federal Reserve officials watch that metric closely as an indication of demand and sales that focuses o