The US economy shows continued strength with growth revised higher in the second quarter.
Economist believe that this positive momentum carried over into the third quarter.
As per CNN, the US economy’s GDP, which measures total economic output, grew at an annualized rate of 3.8% from April to June, which is higher than previous estimates of 3.3% and 3%.
This indicate the stronger economic growth than initially reported.
The US GDP was revised upward mainly because of updated data showing stronger consumer spending.
Personal spending grew at 2.5% annualized rate in the second quarter, higher than the previous estimate of 1.6%.
Bret Kenwell, a US investment analyst, said the large change between the first and third estimates is unusual and outside the norm."
“This year’s economic data — especially over the past few months — has been noisy, and economic policy uncertainty has remained elevated throughout 2025,” he added.
In the second quarter, the US economy rebounded mainly becuase consumers kept spending and imports fell.
Earlier in the year, GDP had been weaker because importers stocked up on goofs ahead of Trump's tariffs which lowered economic growth.
"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," stated CNN.
The government’s first estimate of third-quarter GDP is scheduled to be released next month.
