Q2 GDP report tops expectations, showing bounce back from last quarter contraction

The Bureau of Economic Analysis released the second quarter 2025 gross domestic product (GDP) report Wednesday, showing an annual rate increase of 3%.

“Second quarter GDP topped expectations, which aligns with the broader theme of improving economic measures in recent weeks. Trade swung wildly, undoing its drag from the first quarter, but consumer spending was weak and business investment was flat,” America’s Credit Unions’ Chief Economist Curt Long said. “Nevertheless, the combination of a strong headline figure and low unemployment mean that a rate cut will have to wait until September at the earliest. As always, credit unions will support Main Street through economic volatility.”

The increase in real GDP in the second quarter primarily reflected a decrease in imports, which is measured as a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports.