U.S. economy grew faster than thought in 2025’s second quarter, buoyed by consumer spending

The U.S. enjoyed a more robust economy than previously thought in the second quarter of this year, according to revised federal estimates.

Real gross domestic product grew at 3.8%, the fastest pace in nearly two years, the Commerce Department’s Bureau of Economic Analysis said Thursday.

The new assessment is up from initial estimates of 3.3%, and a turnabout from a contraction of 0.6% in the first quarter.

Retailers front-loaded imports at the start of the year in anticipation of President Trump’s tariffs, putting downward pressure on GDP. Imports eased in the second quarter and consumer spending remained strong, buoying the number.

“The increase in real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports,” the Bureau of Economic Analysis said.

The White House took a victory lap, saying its tax cuts, tariffs and deregulation were paying off.

“America’s economic resurgence under President Trump continues: revised data show even stronger real GDP growth of 3.8 percent in Q2 2025 thanks to the Trump agenda of tax cuts, deregulation, tariffs, and energy abundance,” White House spokesman Kush Desai said. “President Trump pledged to Make America Wealthy Again, and with Joe Biden’s inflation crisis tamed, we are now laying the groundwork for a long-term restoration of American Greatness.”

The path ahead remains unclear, given distortions in the first two quarters from see-sawing imports.

Economists expect uncertainty around shifting tariff policies to be a drag on growth overall. Also, Americans are confronting a difficult labor market, so it is unclear if consumer spending will continue to drive growth if layoffs continue.

For now, the revised second-quarter numbers offered a bright spot.

Heather Long, the chief economist at the Navy Federal Credit Union, said both goods and services spending were healthy.

“The U.S. consumer remained a lot stronger than many thought,” Ms. Long posted on X, “even in the midst of a stock market sell-off and a lot of trade uncertainty.”