US real GDP up 3.3% YoY in Q2 2025: BEA 2nd estimate

In Q1, it decreased by 0.5 per cent year on year (YoY).

The Q2 2025 rise primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports.

Real GDP was revised up 0.3 percentage point (pp) from the advance estimate, primarily reflecting upward revisions to investment and consumer spending that were partly offset by a downward revision to government spending and an upward revision to imports.

Compared to Q1, the upturn in real GDP in Q2 primarily reflected a downturn in imports and an acceleration in consumer spending that were partly offset by a downturn in investment.

Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment increased by 1.9 per cent in Q2 2025, revised up by 0.7 pp from the previous estimate, a BEA release said.

The price index for gross domestic purchases increased by 1.8 per cent YoY in Q2 2025, revised down by 0.1 pp from the previous estimate.

The personal consumption expenditures (PCE) price index increased by 2 per cent YoY, revised down by 0.1 pp from the previous estimate. Excluding food and energy prices, the PCE price index increased by 2.5 per cent, the same as previously estimated.

Real gross domestic income (GDI) increased by 4.8 per cent YoY in Q2 2025 compared with an increase of 0.2 per cent in Q1. The average of real GDP and real GDI increased by 4 per cent in contrast to a decrease of 0.1 per cent in Q1.

Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased by $65.5 billion in Q2 in contrast to a decrease of $90.6 billion in Q1 2025.

ALCHEMPro News Desk (DS)