US Q2 GDP growth revised up to 3.8%

(Sharecast News) - Economic activity in the States expanded more quickly than anticipated during the second quarter on the back of stronger-than-expected consumption and investment. According to the Department of Commerce, in seasonally adjusted terms US gross domestic product grew at a quarterly annualised pace of 3.8% to hit $23.77bn.

That was better than a previous estimate of 3.3%.

Commerce now estimated that household consumption increased at a revised pace of 2.5%, up from 1.6%, while fixed investment was ahead by 4.4%, which was up from 3.3%.

Alexandra Brown noted how so-called final sales to domestic private purchasers were up by 2.4% over the front half of 2025.

"That is only a trivial slowdown from the average growth rate of 2.9% in 2024 and supports out view that the economic backdrop does not warrant the deep rate cuts that markets have been pricing in," she said in a research note sent to clients.

Brown also called attention to the seven tenths of a percentage point upwards revision for the personal savings rate at the end of quarter of 5.3%.

The gain in the headline PCE price index was put at 2.1% in Thursday's report, which was Commerce's second revision of the data, and that of core PCE prices 2.6%.

Both the rate of increase in headline and core PCE prices were revised up by one tenth of a percentage point.