The US economy grew at an annualized rate of 3.8% in the second quarter of 2025, according to the Commerce Department’s third and final GDP estimate.

This final 3.8% figure is significantly higher than both the second estimate of 3.3% and the initial 3.0% reported earlier.

The big picture: The upward revision was mainly driven by stronger personal consumption expenditures, which rose at a 2.5% annual rate, substantially above the previous 1.6%. • Consumer spending remains critical, representing about two-thirds of total US economic output. • Key factors in the Q2 rebound included decreased imports and continued consumer spending, rebounding after an earlier contraction caused by pre-tariff inventory stocking. • The Federal Reserve Bank of Atlanta forecasts the third quarter GDP gro

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