Good news for the US economy

(Dan Tri) - US GDP in the second quarter increased by 3.3% compared to the same period last year. This figure is also higher than the initial estimate of the US Department of Commerce.

According to the updated economic indicators just released by the US Department of Commerce, the country's GDP increased by 3.3% in the second quarter, higher than the initial estimate in July of 3% and the forecast of 3.1% by Dow Jones.

The US economy contracted 0.5% in the first quarter due to a surge in imports. In contrast, imports fell 29.8% in the last quarter, helping lift growth by more than 5 percentage points.

Among the key drivers, private consumption and investment in the second quarter of 2025 were stronger than initially estimated. Consumer spending, which accounts for about 70% of GDP, increased 1.6% year-on-year.

"The positive thing is that actual consumption was higher than previously estimated. Americans continued to spend despite tariffs and uncertainty, albeit at a slower pace than in previous years," Heather Long, chief economist at Navy Federal Credit Union, told AP.

The US economy grew by about 2.1% in the first half of the year. It is expected that in the third quarter of 2025, the country's GDP could grow by 2.2%, according to the GDPNow indicator of the Federal Reserve Bank of Atlanta.

People shop at a store in Chicago, USA (Photo: Reuters).

The US Department of Labor said the number of applications for unemployment benefits fell 5,000 to 229,000 in the week ended August 23.

Ms. Heather Long assessed that the resilient labor market is helping people feel more confident in spending on basic needs and small purchases.

However, she predicts the economy will continue to slow, with spending and growth around 1.5% as the impact of tariffs becomes more apparent to US consumers.

Earlier, US Treasury Secretary Scott Bessent said the $300 billion in import tax revenue he previously estimated was still too low.

"We had a big jump in August compared to July. I think the September jump compared to August will be even bigger. We could be moving towards over $500 billion and even towards $1 trillion," Mr. Bessent said at a cabinet meeting at the White House on August 26.

Mr. Bessent said that this would mean a significant improvement in the budget deficit. Revenue from import tariffs would offset the shortfall from the spending and tax cuts passed in July.

In an interview with CNBC on August 19, the US Treasury Secretary said the US government will use the money collected from import tariffs to pay down the public debt. Previously, some US lawmakers proposed using this money to distribute to the people, with a minimum of 600 USD per adult and child.

Source: https://dantri.com.vn/kinh-doanh/kinh-te-my-don-tin-vui-20250828233919236.htm