The US economy expanded in the second quarter at a slightly faster pace than initially estimated on a pickup in business investment and an outsize boost from trade.
Inflation-adjusted gross domestic product, which measures the value of goods and services produced in the US, increased at a 3.3% annualised pace, the second estimate from the Bureau of Economic Analysis showed on Aug 28. That compared with an initially reported 3% increase.
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.
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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.”
