The U.S. economy bounced back during the spring quarter, and by a more robust amount than previously estimated, according to new data released Aug. 28 by the Commerce Department.

In the Bureau of Economic Analysis’ second estimate for U.S. GDP growth, the figures showed that gross domestic product increased at an annual rate of 3.3% in April-June, following a 0.5% decline in 1Q25. 

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The initial 2Q estimate showed 3.0% growth.

The Bureau noted that the 2Q growth increase primarily reflected a decrease in imports — a subtraction in the calculation for GDP — and an increase in consumer spending. Those factors were partially offset by decreases in investments and exports.

The upward revision to 2Q growth reflected higher estimates for investment and consumer spending that were partially offset by a downward revision to government spending and an upward revision to imports.

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MDM Analysis

As we noted about the Bureau’s first estimate for 2Q GDP, tariff impacts significantly cloud the country’s true April-June growth. 2Q imports plummeted 29.8% during 2Q after surging 37.9% in 1Q as wholesalers and manufacturers rushed to front-load inventory before widespread tariffs went into effect at the start of April. Imports contributed 5.09 points (revised up from 4.99) to the updated GDP figure after negatively impacting it by 4.66 points in 1Q. Consumer spending — the largest driver of the U.S. economy — improved in 2Q with a 1.07-point contribution (revised up from 0.99) after just a 0.31 impact in 1Q.

Excluding volatile trade and inventory figures, U.S. growth advanced at a much softer 1.9% during 2Q when using the Bureau’s figure for final sales to private domestic purchasers — seen as an important measure of broader economic health. That figure received a healthy 0.7-point upward revision from the first 2Q estimate.