If updated figures from the Commerce Department are correct, the U.S. economy had a little bit better second-quarter than initially reported.
In an upgrade from its first estimate, the Commerce Department said Thursday that U.S. gross domestic product — the nation’s output of goods and services — expanded at a 3.3% annual pace from April through June.
That comes after the economy shrank 0.5% in the first three months of 2025. The department had initially estimated second-quarter growth at 3%.
The first-quarter GDP drop – the first time it had fallen in three years — was mainly caused by a surge in imports — which are subtracted from GDP — as businesses scrambled to bring in foreign goods ahead of President Donald Trump’s tariffs, The Associated Press reported.
That trend reversed as expected in the second quarter: Imports fell at a 29.8% pace, boosting April-June growth by more than 5 percentage points, according to the report.
