U.S. Growth Revised Higher in Q2, Thanks to Lutnick

The U.S. economy rebounded this spring from a first-quarter downturn caused by fallout from President Donald Trump’s trade wars.

Even with the upward revision, private investment fell at a 13.8% annual pace from April through June

In an upgrade from its first estimate, the Commerce Department said that U.S. gross domestic product (GDP) — the nation’s output of goods and services — expanded at a 3.3% annual pace from April through June after shrinking 0.5% in the first three months of 2025.

The department had initially estimated second-quarter growth at 3%, Doloresz Katanich reported for Euronews.

The first-quarter GDP drop — the first contraction in three years — was largely driven by a surge in imports, which are subtracted from GDP, as businesses rushed to stockpile foreign goods ahead of Trump’s tariffs.

That trend reversed in the second quarter: imports fell at a 29.8% pace, adding more than 5 percentage points to growth.

The Commerce Department also reported consumer spending and private investment were slightly stronger than initially estimated.

Consumer spending, which makes up about 70% of GDP, grew 1.6% year-on-year after a 0.5% increase in the first quarter. The government had first estimated a 1.4% rise.

Even with the upward revision, private investment fell at a 13.8% annual pace from April through June — the sharpest decline since the second quarter of 2020 at the height of the COVID-19 pandemic.

A reduction in private inventories shaved nearly 3.3 percentage points off second-quarter growth.