US Q2 GDP Growth Revised Higher in Second Estimate, PCE Growth Revised Up

08:47 AM EDT, 08/28/2025 (MT Newswires) -- US economic growth, measured by gross domestic product, was revised up to a 3.3% increase in Q2 from a 3.0% gain in the advance estimate, above a 3.1% increase expected in a survey compiled by Bloomberg as of 7:30 am ET.

GDP fell by 0.5% in Q1.

Personal consumer expenditures were revised up to a 1.6% gain from the 1.4% increase in the advance estimate and were above a 0.5% increase in Q1.

There was also an upward revision to nonresidential fixed investment growth but downward adjustments to private inventories and government spending and a slightly larger drag from net exports. Residential fixed investment was little changed.

The GDP price index was unrevised from the previous estimate of a 2.0% gain, while overall PCE price growth was revised down slightly to 2.0% and core PCE price growth was unrevised at 2.5%.

The third estimate of Q2 GDP is scheduled to be released on Sept. 25.

The quarterly measure of gross domestic product, or GDP, is released by the US Bureau of Economic Analysis at three stages, with the advance reading about a month after the end of a quarter, followed by second and third readings for the same quarter two and three months after quarter-end.

The data are broken down by each of the GDP components: consumption, fixed investment (which includes residential and nonresidential investment and inventories), government spending, and net exports (exports minus imports). The report also includes prices measures for the overall reading and the categories.

Strong GDP growth is a positive for stocks, but a negative for bonds, especially if it is accompanied by sharp inflation gains.

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