The U.S. economy grew at its fastest pace in nearly two years in the second quarter, with GDP revised up to 3.8% on stronger consumer spending and a narrower trade deficit.
The Commerce Department’s final revision on Thursday marked the second consecutive upward adjustment, highlighting resilient domestic demand despite earlier concerns.
CNBC analyst Rick Santelli said he was “a bit shocked” by the size of the upward revision, noting momentum for stronger growth.
📈 “I’m a bit shocked to be honest”:
Second quarter GDP has been revised HIGHER once again to 3.8% — reflecting much stronger than expected consumer spending, rising incomes, and lower imports. pic.twitter.com/B6GUy2Qfhr
— Rapid Response 47 (@RapidResponse47) September 25, 2025
Real disposable income also grew 3.1%, giving Americans more spending power.
“America’s economic resurgence under President Trump continues,” White House Deputy Press Secretary Kush Desai said, crediting tax cuts, deregulation, tariffs, and energy production for the growth.
Manufacturers also reported strong durable goods demand in August, with new orders exceeding forecasts and signaling business confidence.
Small business optimism hit its highest level in nearly a decade, the U.S. Chamber of Commerce reported. New home sales reached a three-year high in August.
Factory output rose in August while government output declined, pointing to private sector strength driving the expansion.
Job Creators Network CEO Alfredo Ortiz said the data show “America’s small business backbone is strong and getting stronger,” crediting GOP tax cuts such as immediate expensing and the 20% small business deduction.
The summer housing market marked its strongest period in more than a decade, while core capital goods orders also beat expectations, suggesting continued momentum.
Oxford Economics Chief U.S. Economist Ryan Sweet said the revision reflected stronger consumer spending and suggested Q3 growth forecasts may also rise.
The revised figures show broad-based strength across consumer spending, business investment, and housing, raising the estimate from 3.3% to 3.8%.
Paul Stanley, chief investment officer at Granite Bay Wealth Management, told CNN the strong GDP showed resilience and lowered recession risks despite slower labor market growth.