The Commerce Department initially estimated a 3% increase in GDP during the second fiscal quarter of 2025, falling short of the 3.1% forecast.
This week, they said it was actually 3.3%.
The upward revision reflected households spending more on health care, pharmaceuticals and dining out, while companies boosted purchases of equipment and intellectual property. Business investment was driven by stronger outlays on software, research and development, light trucks, and commercial structures.
Trade flows also contributed to growth. Imports, which subtract from GDP calculations, declined after surging in the first quarter ahead of new tariffs on some goods.
Long story short, we're spending more money than the experts thought we would.
This indicates that people have more money to spend.
Government spending was revised lower, driven by reduced state and local outlays, which tempered some of the gains in private demand.
The income side of the national accounts painted a similarly robust picture. Real gross domestic income climbed at a 4.8 percent rate, while corporate profits rebounded after declining in the first quarter.
We are a long, long way from recovering from Biden's "best economy ever, Jack" but the trend is positive.
P.S. Now check out our latest video 👇
