U.S. GDP Growth Surges to 3.8% in Second Quarter, Exceeds Forecasts

The U.S. economy showed a robust rebound in the second quarter of 2025, with GDP growth revised upward to 3.8%, surpassing initial estimates and analyst forecasts. This growth was primarily driven by increased consumer spending and a decrease in imports, although declines in investment and exports partially offset gains. The revised data has positively influenced the U.S. dollar, which gained against the euro and yen, and sparked speculation that the Federal Reserve might slow future interest rate cuts. Various sectors, including finance, insurance, healthcare, and construction, experienced significant growth, while others like retail trade and education saw declines. The White House credited President Donald Trump's economic policies—including tax cuts, deregulation, tariffs, and energy abundance—for the economic upswing and highlighted a drop in inflation. Despite the positive data, investors remained cautious, awaiting further Federal Reserve guidance on interest rates and monitoring labor market conditions.