The Bureau of Economic Analysis reports that US real GDP grew at an annual rate of 3.3% in Q2 2025, rebounding from a 0.5% decline in Q1. The growth was driven by lower imports and stronger consumer spending, despite declines in investment and exports. GDP was revised up from earlier estimates, while inflation indicators were slightly revised down. Real gross domestic income rose 4.8%, and corporate profits increased by $65.5 billion, marking a sharp turnaround from Q1. The BEA writes:
Real gross domestic product (GDP) increased at an annual rate of 3.3 percent in the second quarter of 2025 (April, May, and June), according to the second estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP decreased 0.5 percent.
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.
Real GDP was revised up 0.3 percentage point from the advance estimate, primarily reflecting upward revisions to investment and consumer spending that were partly offset by a downward revision to government spending and an upward revision to imports. For more information, refer to the “Technical Notes” below.
Compared to the first quarter, the upturn in real GDP in the second quarter primarily reflected a downturn in imports and an acceleration in consumer spending that were partly offset by a downturn in investment.
Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 1.9 percent in the second quarter, revised up 0.7 percentage point from the previous estimate.
The price index for gross domestic purchases increased 1.8 percent in the second quarter, revised down 0.1 percentage point from the previous estimate. The personal consumption expenditures (PCE) price index increased 2.0 percent, revised down 0.1 percentage point from the previous estimate. Excluding food and energy prices, the PCE price index increased 2.5 percent, the same as previously estimated.
Real gross domestic income (GDI) increased 4.8 percent in the second quarter, compared with an increase of 0.2 percent in the first quarter.
Real GDP and Related Measures
(Percent change from Q1 to Q2)
Advance Estimate
Second Estimate
Real GDP
3.0
3.3
Current-dollar GDP
5.0
5.3
Real final sales to private domestic purchasers
1.2
1.9
Real GDI
…
4.8
Average of real GDP and real GDI
…
4.0
Gross domestic purchases price index
1.9
1.8
PCE price index
2.1
2.0
PCE price index excluding food and energy
2.5
2.5
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $65.5 billion in the second quarter, in contrast to a decrease of $90.6 billion in the first quarter.
First Quarter Wages and Salaries
BEA’s standard practice for first-quarter estimates of wages and salaries is to incorporate data from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages (QCEW) program as part of the annual update of the National Economic Accounts. New QCEW data for the first quarter of 2025 will be incorporated in next month’s release along with the 2025 Annual Update of the National Economic Accounts (refer to box below for details).
