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Gross domestic product—the government’s broad measure of economic output—grew at a 3.8 percent annual rate from April through June in Commerce’s third estimate. That compares with the prior reading of 3.3 percent. Adjusted only for seasonality, not inflation, the economy increased at a six percent pace.
Economists had expected no change from the earlier estimate. Instead, updated data showed firmer household demand. Consumer spending rose at a 2.5 percent rate, up from the previously reported 1.6 percent. Final sales to private domestic purchasers—a key gauge of underlying demand—advanced 2.9 percent, sharply higher than the earlier 1.9 percent reading.
The rebound followed a contraction in the first quarter, when GDP declined at a 0.6 percent rate as businesses accelerated imports ahead of President Trump’s tariffs.
Inflation edged slightly higher. Prices rose at a 2.1 percent annual rate in the second quarter, compared with the prior estimate of two percent. Excluding food and energy, prices increased 2.6 percent.