Business investment expanded at a 5.7% pace after surging in the first quarter.
The latest figure was stronger than the 1.9% initially reported and reflected an upward revision to investment in transportation equipment and the strongest advance in intellectual property products in four years.
The turnaround in GDP followed a first-quarter contraction that was the first since 2022 as companies raced to import goods ahead of tariff hikes.
Looking forward, the economy is projected to expand at a modest pace as consumers and businesses adjust to President Donald Trump’s trade policy.
See also: Fed finally gets some backup in lonely fight to stave off Trump
The “revisions do not change the story that underlying demand is slowing outside of a few specific parts of the economy,” Citigroup economists Veronica Clark and Andrew Hollenhorst wrote in a note. “We expect underlying growth will slow further as the labor market weakens and tariff costs increasingly weigh on activity.”
