US real GDP grew at an annualized rate of +3.3% in Q2 2025, revised up from +3.0% in the advance estimate, following a -0.5% contraction in Q1.

• The upward revision reflected stronger investment and consumer spending, partly offset by weaker government spending and higher imports.

• Personal consumption growth was 1.6% at a SAAR in the second estimate, revised up from 1.4%.

• The decline in private investment was revised up from -15.6% in the 1st estimate to -13.8%.

• Federal government consumption growth was the weakest since 2022 Q1 at -8.5% as nondefense spending growth was the weakest since Q2 2021 at -14.3%.

• Real final sales to private domestic purchasers rose +1.9% (revised up +0.7 ppts), showing firmer underlying private demand.

• The gross domestic purchases price index increased +1.8% (revised down -0.1 ppt), while the PCE price index rose +2.0% (also revised down -0.1 ppts) and core PCE held steady at +2.5%.

• Real gross domestic income (GDI) jumped +4.8% after just +0.2% in Q1, bringing the average of GDP and GDI to +4.0%.

• Corporate profits rebounded +$65.5 billion in Q2, reversing part of the -$90.6 billion decline in Q1. The increase in profits was driven by a $59.1 billion increase in the nonfinancial sector.