Link Securities | According to the second estimate of the data, published by the Department of Commerce, US gross domestic product (GDP) grew in Q2 2025 at an annualised quarterly rate of 3.3%, slightly higher than the 3.0% initially calculated and in line with FactSet consensus analysts’ expectations. In Q1 2025, the US economy contracted by 0.5% compared to the previous quarter in annualised terms.
The upward revision of growth in this variable was mainly due to higher private consumption expenditure (up 1.6% compared to the 1.4% initial estimate) and higher investment (up 3.3% compared to the 0.4% initial estimate) than initially estimated, which was partially offset by lower public spending (down 0.2% compared to the 0.4% increase initially estimated) and a smaller decline in imports (down 29.8% compared to the 30.3% initial estimate). Growth was driven by solid household spending and a decline in imports. However, the fall in business investment (down 13.8%) and exports (1.3%) slowed down even greater progress.
Year-on-year, US GDP growth was 2.1% (1.99% in Q1 2025), slightly higher than the 2.0% initially estimated and in line with analysts’ expectations.
