U.S. economy accelerated during the second quarter as per Commerce Department's revised data

The U.S. economy expanded at a robust rate of 3.3% in the second quarter of 2025, according to the latest data from the Bureau of Economic Analysis. However, concerns over the third quarter's growth persist, with many economists predicting a slowdown.

The growth in Q2 follows a GDP contraction of 0.5% in the first quarter, leaving GDP growth in the first half of 2025 at an annualized rate of about 1.4%. This growth rate is faster than the initial estimate of 3% and the revised estimate of economists polled by LSEG.

The upward revisions to second quarter economic growth stemmed primarily from upward revisions to investment and consumer spending, partly offset by downward revisions to government spending and an upward revision to imports. EY-Parthenon chief economist Gregory Daco warns that the strength of Q2 growth was largely a mirage, reflecting a sharp decline in imports after businesses accelerated their purchases in response to tariffs in Q1.

The Federal Reserve's interest rate decision at the mid-September monetary policy meeting could be influenced by the July PCE data, August jobs report, and CPI inflation data. The minutes from the July rate decision showed that inflation fears outweighed the jobs market, with the Fed Chair Jerome Powell signaling a possibility for an interest rate cut at the next meeting. No relevant information about an economist's forecast on a Federal Reserve interest rate cut in September was found in the provided search results.

The Commerce Department will release the July personal consumption expenditures (PCE) index on Friday. Slowing job growth could lead to the economy not keeping up with the above-trend growth from the previous quarter, adding fuel to those calling for rate cuts.

The Q2 GDP data is now being published on the blockchain by the Commerce Department, marking a significant step towards increased transparency and trust in economic data. The BEA will release its final estimate of Q2 GDP on Sept. 25, which could further revise the economic growth figure.

Despite the strong Q2 growth, Daco notes that the U.S. economy only expanded at a muted 1.4% average pace in H1, revealing soft underlying private sector demand outside of the AI-driven investment boom. Tariffs contributed to the Q1 contraction and the Q2 decline in imports, casting a shadow over the future of the U.S. economy.

U.S. economy accelerated during the second quarter as per Commerce Department's revised data