GDP Revised Up To Show Stronger Growth In First Half of Year

The economy grew at a faster pace than previously estimated in the first half of 2025, data from the Commerce Department showed Wednesday.

Gross domestic product rose at a 2.2 percent annualized rate in the April through June period, the government said. The previous estimate had been for 1.5 percent growth.

The upward revision reflected stronger readings for consumer spending, investment, and government expenditures. Real consumer spending rose 3.8 percent annualized, revised up from 3.4 percent.

Nominal growth, which is not adjusted for inflation, was revised up from an estimated pace of eight percent to 8.5 percent.

Growth in real final sales to private domestic purchasers, a critical measure of underlying economic strength, was revised up by four-tenths of a percentage point to 4.6 percent. Prior to adjusting for inflation, final sales to private domestic purchasers rose at an annualized pace of 9.5 percent.

Real gross domestic income was revised up to an annual growth rate of 2.6 percent from 2.2. The average of GDP and GDI, sometimes called gross domestic output, rose 2.4 percent, up from the prior estimate of 1.8 percent.

There was good news on inflation. Personal consumption prices climbed 5.0 percent, according to the final revision for the second quarter, down from the prior estimate of 5.3 percent. Core inflation was revised down to 3.3 percent from 3.6.

The first quarter’s growth rate was revised up to 2.5 percent from the prior estimate of 2.1 percent.

Despite surveys showing sinking consumer confidence, American consumers expanded purchases by 0.9 percent in August, the Commerce Department in a separate report. Prices rose 0.3 percent in August, leaving real consumer spending up 0.6 percent. Excluding food and energy, prices rose by 0.2 percent. Income rose by 0.2 percent prior to adjusting for taxes. After taxes, income rose by 0.3 percent.