US Economy Grows at 2.2% Pace in Second Quarter, Upward Revision Shows

The U.S. economy expanded at a 2.2% annual rate from April through June, a stronger performance than previously estimated, according to government data. This upward revision reflects robust consumer spending and increased business investment during the second quarter.

The Commerce Department's latest report indicated that gross domestic product, a measure of the nation's total output of goods and services, was revised from an earlier estimate of 1.5%. This figure follows a 2.5% growth pace recorded in the first quarter.

Consumer spending, which constitutes about 70% of U.S. economic activity, saw a healthy increase at a 3.8% annual pace, a notable acceleration from the 0.7% growth seen in the first quarter.

Despite the overall positive growth, imports significantly impacted the GDP calculation. Imports rose at a 12.6% annual pace, with a surge in shipments of goods such as computer chips contributing to artificial intelligence investments. This increase in imports subtracted nearly 1.7 percentage points from the second-quarter growth figure, as GDP only measures domestic production.

The economy has demonstrated resilience amidst geopolitical tensions, including conflicts and subsequent energy price spikes.

Business investment, excluding the housing sector, rose at a robust 9% rate in the second quarter, driven in part by the boom in artificial intelligence-related investments. A measure of the economy's underlying strength, which excludes volatile government spending and trade figures, grew at a strong 4.6% rate, up from 1.8% in the first quarter.

Investment in housing also saw an increase, ticking up 2.8% for the first time since the end of 2024, though the housing market remains affected by high mortgage rates.

This report represents the final estimate for second-quarter GDP growth. The initial estimate for third-quarter growth is expected on October 29.