US economy grows 3% in Q2 2025

The US economy grew at a faster-than-expected pace in the second quarter of 2025, supported by a rebound in exports and improved consumer spending.

Official data released on Wednesday showed that real gross domestic product (GDP) rose by 3% in the three months ending in June.

This compares to a 0.5% contraction in the first quarter and exceeds Dow Jones analysts' forecasts, which had pointed to growth of just 2.3%.

The Bureau of Economic Analysis attributed the expansion mainly to a decline in imports and a pickup in consumer spending, partially offset by continued weakness in investment.

The report also showed that the personal consumption expenditures (PCE) price index slowed to 2.1% in Q2, down from 3.7% in the first quarter.

Core PCE inflation, which excludes food and energy, also decelerated, rising 2.5% compared to 3.5% in the three months ending in March.