US economy expands 3.8% in Q2, exceeding preliminary estimates

ISTANBUL

The US economy expanded by 3.8% quarter-on-quarter in the second quarter of the year, exceeding the preliminary estimate of 3.3%, according to official data released by the Bureau of Economic Analysis on Thursday.

The increase in real gross domestic product (GDP) in the second quarter primarily reflected a decrease in imports, which are subtracted from the calculation of GDP, and an increase in consumer spending, the bureau said.

"These movements were partly offset by decreases in investment and exports," it said.

The second estimate for the GDP growth in the second quarter was 3.3%, while the contraction in the GDP for the first quarter of 2025 was revised downward to 0.6%.

The 0.5 percentage point rise in the GDP growth from the initial estimates primarily reflected an upward revision to consumer spending.

Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 2.9% in the second quarter, a 1 percentage-point increase from the estimates.

"From an industry perspective, the increase in real GDP reflected increases of 10.2% in real value added for private goods-producing industries and 3.5% for private services-producing industries that were partly offset by a decrease of 3.2% in real value added for government," the bureau said.

It also said that the price index for gross domestic purchases increased by 2% in the second quarter, up 0.2 percentage points from the initial estimate.

"The personal consumption expenditures (PCE) price index increased 2.1%, revised up 0.1 percentage point. Excluding food and energy prices, the PCE price index increased 2.6%, also revised up 0.1 percentage point," the bureau added.