Economic growth increased during the first quarter of 2025, rising 3% after falling 0.5% during the first quarter of 2025, according to CNBC. Economists had been expecting growth of 2.3%.
“A turnaround in the trade balance and renewed consumer strength” reportedly contributed to the boost during the second quarter.
Consumer spending rose 1.4% during the second quarter, which is up from a 0.5% increase in the first quarter of 2025. Federal government spending fell 3.7% during the second quarter of 2025 after declining 4.6% during the first quarter.
The personal consumption expenditures price index, which is the Federal Reserve’s key inflation metric, rose 2.1% for the quarter.
Exports declined 1.8% during the second quarter, and imports fell 30.3%, reversing a 37.9% increase during the first quarter. Final sales to private domestic purchasers—which the Federal Reserve watches closely as a demand indicator—rose 1.2%, down from the first quarter’s 1.9% increase and the slowest gain since the fourth quarter of 2022. Residential investment fell 4.6% for the quarter.
