U.S. Economic Report Q2 2025

1. U.S. GDP Growth (Q2 2025)

The U.S. economy showed strong growth in the second quarter of 2025. The GDP rose by 3.8%, beating the expected 3.3% and rebounding from a previous contraction of -0.5%. This growth reflects stronger consumer spending, business activity, and overall economic recovery.

GDP Price Index

The GDP Price Index increased by 2.1%, slightly above the expected 2.0%, indicating moderate inflation in the economy.

GDP Sales

GDP sales rose by 7.5% compared to an expected 6.8%, showing a robust increase in economic transactions during the quarter.

2. Durable Goods Orders (August 2025)

Durable goods orders rebounded in August, signaling stronger business investment. Key details include:

• Total Durable Goods Orders: 2.9% increase (expected -0.3%)
• Durables Excluding Defense: 1.9% increase (previous -2.3%)
• Core Durable Goods Orders: 0.4% increase (expected -0.1%)

These numbers suggest steady demand for long-lasting products and improving confidence among businesses.

3. Corporate Profits (Q2 2025)

U.S. corporate profits rose only 0.2% in Q2, below the expected 2%. This indicates that while the overall economy is growing, businesses may be facing margin pressures and higher costs.

4. Core PCE Inflation (Q2 2025)

The Core Personal Consumption Expenditures (PCE) Price Index increased by 2.6%, slightly above the expected 2.5%, showing moderate inflation in consumer prices. This is a key indicator for the Federal Reserve in setting interest rates.

Conclusion

The latest U.S. economic data points to a strong recovery in Q2 2025, with robust GDP growth, rising durable goods orders, and moderate inflation. However, corporate profits remain weak, signaling challenges for businesses despite overall economic strength.