US economic growth revised up on strong consumer spending
Summary
The US economy grew faster in the spring than initially reported, largely because people spent more money and imports fell. The Gross Domestic Product (GDP) increased at an annual rate of 3.8% from April to June, an update from an earlier prediction of 3.3%. Despite economic challenges like tariffs, consumer spending continues to play a crucial role in driving the economy.Key Facts
- The US GDP grew at an annual rate of 3.8% from April to June.
- This growth rate is higher than the previously estimated 3.3%.
- The rise in GDP was helped by increased consumer spending, which went up by 2.5% in a year.
- Imports decreased, helping boost GDP as imports are subtracted in GDP calculations.
- The US economy had shrunk by 0.6% at the start of 2025.
- Retail sales increased by 0.6% in August from the previous month.
- In August, the US added only 22,000 jobs, while the unemployment rate slightly increased from 4.2% to 4.3%.
- Initial unemployment insurance claims recently dropped to their lowest since July.
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