US economy hit 3.8% GDP growth in second quarter: Commerce Department

The American economy accelerated in the second quarter, as the Ministry of Commerce issued its second review of the growth of real GDP (GDP) for the last quarter.

On Thursday, the Economic Analysis Office (bea) issued its third and final appreciation for the GDP for the second quarter, which showed that the economy grew at an annual rate of 3.8 % in April until June.

This figure was more hot than 3.3 % estimated than the Economists covered by LSEG, and it came at the highest estimated GDP in the second quarter of the Ministry of Commerce by 3 %.

Bea explained that the increase in GDP in the second quarter “reflected in the first place a decrease in imports, which is a sub -process in the gross domestic product account, and an increase in consumer spending. These movements were partially compensated by decline in investment and export.”

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Growth in the second quarter decreased to 0.5 percentage points from the second estimate of Bea, mainly stems from higher consumer spending than previously reported.

The agency explained that consumer spending on services was reviewed and partially compensated by a declining review of the purchase of goods. The largest contributor to spending on services was transportation, financial services and insurance. The main shareholders in the spending of goods are cars and parts.

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Economic growth was revised in the first quarter of a decrease from 0.5 % to 0.6 %. (Emily Elconin / Bloomberg via Getty Images / Getty Images)

The real final sales of private local buyers, the total consumer spending and fixed, fixed private investment, were revised by 1 percentage point to 2.9 % profit in the second quarter.

The growth in the second quarter follows the decrease in the gross domestic product in the first quarter that has been revised down from the shrinking of 0.5 % to 0.6 %, leaving the GDP growth in the first half of 2025 at an annual rate of about 1.6 %.

Bea has attributed the rise in the second quarter to a decrease in imports and an acceleration in consumer spending, which was partly compensated due to low investment.

The inflation remained stubbornly in August, where the Federal Reserve weighs discounts in interest rates

Definitions are taxes on imported goods paid by the importer, which usually passes the high costs of consumers through high prices. (Jesus Olrt / Anadolu via Getty Images / Getty Images)

Reviews come to gross domestic product amid concern about the economy amid signs of the slowdown in the labor market and continuous inflation than the target rate of 2 % of the federal reserve.

“Although this GDP reviews are looking back, it draws a somewhat reassuring image of the American economy. In particular, personal consumption has been reviewed up, which gives more credibility to the idea that consumers are still flexible.”

“Despite the results of the strong GDP today, the main focus of this week is on the PCE report for tomorrow. Active investors will want to see a result of enlargement in the line or less, while maintaining federal reserve lines for other price discounts in 2025.” “While inflation and employment reports are a great axis for investors, it will be more examined in the coming months.”

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Markets expects the Federal Reserve move forward with discounts in the 25 Basia interest rates this year, after reducing this size at a meeting last week.

Political makers will take a look at the Federal Reserve’s favorite inflation scale and the PC (PCE) index, for August when it is released tomorrow, while the job report in September is next Friday.