The U.S. economy had a better second quarter than originally thought.
Adjusted figures show the economy’s comeback in the second quarter was just revised higher again, and economists estimate that momentum carried on in the third quarter, underscoring the resilience of the world’s largest economy.
The country’s GDP — the broadest measure of economic output — rose at an annualized rate of 3.8% from April through June, the Commerce Department said Thursday in its third and final estimate.
That’s significantly higher than the 3.3% rate reported in the second estimate, and well above the 3% initially reported, according to a report from CNN.
GDP was revised higher largely due to new additional data on consumer spending. Personal consumption expenditures rose at an annualized pace of 2.5% in the second quarter, according to the third estimate, up sharply from the second estimate’s 1.6%.
The big difference between the first estimate and the third one is “certainly notable and outside the norm,” Bret Kenwell, US investment analyst at investing platform eToro, told CNN.
“This year’s economic data — especially over the past few months — has been noisy, and economic policy uncertainty has remained elevated throughout 2025,” he said. “With so many moving parts in the GDP report, it’s not surprising that larger-than-expected revisions are showing up, particularly in a year marked by heightened volatility and mixed signals.”
But the economic story of the second quarter remains the same, according to the network’s report. Falling imports and U.S. consumer spending helped fuel the rebound during the spring, following a contraction in the beginning of the year when importers stocked up on inventories to get ahead of President Donald Trump’s tariffs, which subtracted from GDP.
According to the CNN report, the Federal Reserve Bank of Atlanta estimates that GDP continued to power through at a robust pace in the third quarter, forecasting third-quarter GDP to register at a solid 3.3% rate.
“Thursday’s upward GDP revision for the second quarter confirmed that the economy grew at a healthy clip, even as tariff uncertainty reached fever pitch during the quarter,” Paul Stanley, chief investment officer at Granite Bay Wealth Management, wrote in an analyst note Thursday, according to CNN.
“The US economy is resilient and the strong GDP is another indication that we are not at risk of any kind of recession, even with slowing labor market growth,” he said.
