US Economy Grew 2.2% in Second Quarter, Revised Up

The U.S. economy grew faster this spring than first thought. The Commerce Department revised second-quarter growth to a 2.2% annualized pace, up from its earlier estimate of 1.5%, according to the Associated Press.

Gross domestic product, or GDP, is the broadest measure of everything the country produces. The annualized rate is what growth would be if the quarter’s pace continued for a full year.

American shoppers powered the revision. Consumer spending, which makes up about 70% of all economic activity, rose at a healthy 3.8% annual pace, far faster than the 0.7% pace of the first quarter.

Businesses also spent more. Investment excluding housing rose 9%, a jump that reflects the boom in artificial intelligence, as companies pour money into data centers, chips and software.

One factor held the headline number back. Imports rose 12.6% in the quarter, and because GDP counts only what is produced inside the United States, goods bought from abroad subtract from the total.

Strip out volatile government spending and trade, and the economy’s underlying strength looks even better. That measure grew 4.6%, up from 1.8% in the first quarter.

Housing offered a small bright spot. Investment in homes rose 2.8%, its first increase since the end of 2024, after a long slump tied to high mortgage rates.

The Commerce Department will release its first estimate of third-quarter growth on Oct. 29, which will show whether the spring momentum carried into the summer.