The Commerce Department, in a dramatic upgrade of its previous estimate, said the U.S. economy expanded at a 3.8% pace from April-June, the Associated Press reports.
U.S. gross domestic product rebounded in the second quarter from a 0.6% first-quarter drop. The department had previously estimated second-quarter growth at 3.3%.
The first-quarter GDP drop marked the first U.S. economy retreat in three years and stemmed largely from a surge in imports ahead of the imposition of sweeping tariffs.
The trend reversed in the second quarter, with imports falling at a 29.3% pace and boosting April-June growth by more than 5 percentage points.
Consumer spending was up 2.5% from 0.6% in the first quarter, and well above the government’s previously estimated 1.6%.
The Commerce Department will release its initial estimate of July-September growth on Oct. 30.
