Overview

• Consumer spending was revised higher to a 1.6% annualized pace, helping lift the quarter’s growth.
• Business investment strengthened, with intellectual property products up an estimated 12.8% and equipment up 7.4%, the fastest IP gain in four years.
• Imports fell 29.8% after Q1 stockpiling ahead of tariffs, so net exports added nearly 5 percentage points to Q2 growth even as exports slipped 1.3%.
• A key gauge of underlying demand—real final sales to private domestic purchasers—rose at a 1.9% rate, up from the prior 1.2% estimate.
• Inflation stayed near the Fed’s goals (headline PCE 2.0%, core 2.5%), gross domestic income jumped 4.8% with profits rebounding, and the final Q2 estimate with annual benchmark revisions arrives Sept. 25.