US economy grew faster than expected in the second quarter

Core Points - The U.S. economy experienced an acceleration in the second quarter, with a reported annualized GDP growth rate of 3.8% from April to June [1][2] - This growth rate exceeded economists' expectations of 3.3% and was higher than the initial estimate of 3% by the Commerce Department [2] - The increase in GDP was primarily driven by a decrease in imports and an increase in consumer spending, although these were partially offset by declines in investment and exports [2] Economic Context - The second quarter growth follows a downward revision of GDP contraction in the first quarter, which was adjusted from -0.5% to -0.6%, resulting in an annualized GDP growth rate of approximately 1.6% for the first half of 2025 [3]