Real gross domestic product (GDP) increased at an annual rate of 3.8 percent in the second quarter of 2025 (April, May, and June), according to the third estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP decreased 0.6 percent (revised).
The increase in real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports.
Real GDP was revised up 0.5 percentage point from the second estimate, primarily reflecting an upward revision to consumer spending. For more information, refer to the “Technical Notes” below.
Compared to the first quarter, the upturn in real GDP in the second quarter primarily reflected a downturn in imports and an acceleration in consumer spending that were partly offset by a downturn in investment.
Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 2.9 percent in the second quarter, revised up 1.0 percentage point from the previous estimate.
From an industry perspective, the increase in real GDP reflected increases of 10.2 percent in real value added for private goods-producing industries and 3.5 percent for private services-producing industries that were partly offset by a decrease of 3.2 percent in real value added for government.
Real gross output increased 1.2 percent in the second quarter, reflecting increases of 0.6 percent for private goods-producing industries and 1.7 percent for private services-producing industries that were partly offset by a decrease of 0.7 percent for government.
The price index for gross domestic purchases increased 2.0 percent in the second quarter, revised up 0.2 percentage point from the previous estimate. The personal consumption expenditures (PCE) price index increased 2.1 percent, revised up 0.1 percentage point. Excluding food and energy prices, the PCE price index increased 2.6 percent, also revised up 0.1 percentage point.
Real gross domestic income (GDI) increased 3.8 percent in the second quarter, revised down 1.0 percentage point from the previous estimate. The average of real GDP and real GDI increased 3.8 percent, revised down 0.2 percentage point.
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $6.8 billion in the second quarter, a downward revision of $58.7 billion.
| Real GDP and Related Measures | |||
|---|---|---|---|
| [Percent change from 2025 Q1 to Q2] | |||
| Advance Estimate | Second Estimate | Third Estimate | |
| Real GDP | 3.0 | 3.3 | 3.8 |
| Current-dollar GDP | 5.0 | 5.3 | 6.0 |
| Real final sales to private domestic purchasers | 1.2 | 1.9 | 2.9 |
| Real GDI | … | 4.8 | 3.8 |
| Average of Real GDP and Real GDI | … | 4.0 | 3.8 |
| Gross domestic purchases price index | 1.9 | 1.8 | 2.0 |
| PCE price index | 2.1 | 2.0 | 2.1 |
| PCE price index excluding food and energy | 2.5 | 2.5 | 2.6 |
Annual Update of the National Economic Accounts
Today’s release presents results from the 2025 annual update of the National Economic Accounts, which include the National Income and Product Accounts and the Industry Economic Accounts. The update covered the first quarter of 2020 through the first quarter of 2025 and resulted in revisions to GDP, GDP by industry, GDI, and their major components. The reference year remains 2017.
With today’s release, most data are available through BEA’s Interactive Data application on the BEA website (www.bea.gov). Refer to “Information on 2025 Annual Updates to the National, Industry, and State and Local Economic Accounts” for the data availability schedule and a table showing current-dollar revisions, major source data, and conceptual changes for components of GDP, national income, and personal income. An article describing the update in more detail will be forthcoming in the Survey of Current Business.
The updated estimates show that real GDP increased at an average annual rate of 2.4 percent from 2019 to 2024, the same as previously published. Over the same period, real GDI increased at an average annual rate of 2.3 percent, also the same as previously published. The average of real GDP and real GDI over the same period was 2.4 percent, 0.1 percentage point higher than previously published.
For the period of economic contraction from the fourth quarter of 2019 through the second quarter of 2020, real GDP decreased at an annual rate of 17.4 percent, revised up 0.1 percentage point. For the period of economic expansion from the second quarter of 2020 through the first quarter of 2025, real GDP increased at an annual rate of 4.5 percent, the same as previously published.
Previously published estimates, which are superseded by today’s release, are found in BEA’s archives.
Updates for the First Quarter of 2025
For the first quarter of 2025, real GDP is now estimated to have decreased 0.6 percent, a downward revision of 0.1 percentage point from the previously published estimate, reflecting downward revisions to investment, government spending, and exports that were partly offset by an upward revision to consumer spending. Imports were revised up.
Real final sales to private domestic purchasers is now estimated to have increased 1.9 percent in the first quarter, the same as previously published.
From an industry perspective, real value added for private goods-producing industries is now estimated to have decreased 5.9 percent in the first quarter, a downward revision of 3.1 percentage points. Private services-producing industries increased 0.4 percent, an upward revision of 0.7 percentage point. Government increased 1.2 percent, a downward revision of 0.8 percentage point.
Real gross output is now estimated to have increased 0.6 percent, the same as previously published. Private goods-producing industries decreased 0.9 percent, a downward revision of 0.3 percentage point. Private services-producting industries increased 1.3 percent, an upward revision of 0.2 percentage point. Government decreased 0.8 percent, a downward revision of 0.2 percentage point.
The price index for gross domestic purchases is now estimated to have increased 3.1 percent in the first quarter, a downward revision of 0.3 percentage point. The PCE price index increased 3.4 percent, also revised down 0.3 percentage point. Excluding food and energy, the PCE price index increased 3.3 percent, revised down 0.2 percentage point.
Real GDI is now estimated to have increased 1.0 percent in the first quarter; in the previously published estimates, first-quarter GDI was estimated to have increased 0.2 percent. The leading contributors to the upward revision were corporate profits, based primarily on updated data from the Census Bureau’s Quarterly Financial Report, and compensation, based primarily on new first-quarter wage and salary estimates from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages. The average of real GDP and real GDI is now estimated to have increased 0.2 percent in the first quarter; in the previously published estimates, the average of GDP and GDI was estimated to have decreased 0.1 percent.
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) is now estimated to have decreased $47.8 billion in the first quarter, an upward revison of $42.8 billion.
| First Quarter 2025 | ||
|---|---|---|
| Previous Estimate | Revised Estimate | |
| (Percent change from preceding quarter) | ||
| Real GDP | -0.5 | -0.6 |
| Current-dollar GDP | 3.2 | 2.9 |
| Real final sales to private domestic purchasers | 1.9 | 1.9 |
| Real GDI | 0.2 | 1.0 |
| Average of real GDP and real GDI | -0.1 | 0.2 |
| Gross domestic purchases price index | 3.4 | 3.1 |
| PCE price index | 3.7 | 3.4 |
| PCE price index excluding food and energy | 3.5 | 3.3 |
Next release: October 30, 2025, at 8:30 a.m. EDT
Gross Domestic Product (Advance Estimate)
3rd Quarter 2025
Technical Notes
Sources of revisions to real GDP in the third estimate
Real GDP increased at an annual rate of 3.8 percent (0.9 percent at a quarterly rate1) in the second quarter, an upward revision of 0.5 percentage point from the previous estimate, primarily reflecting an upward revision to consumer spending that was partly offset by a downward revision to exports. Imports decreased less than in the previous estimate.
- The upward revision to consumer spending reflected an upward revision to services that was partly offset by a downward revision to goods. Within services, the largest contributors were transportation services as well as financial services and insurance, based on new and revised second-quarter data from the Census Bureau Quarterly Services Survey. Within goods, the largest contributor was motor vehicles and parts (mainly new and used light trucks), based on updated Wards Automotive unit sales and IHS-Polk registrations data.
- For both exports and imports, the revised estimates primarily reflected updated data from BEA’s International Transactions Accounts. Within exports, the downward revision was mainly to goods. Within imports, an upward revision to services was partly offset by a downward revision to goods.
More information on the source data and BEA assumptions that underlie the second-quarter estimate is shown in the key source data and assumptions table.
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