US second-quarter GDP revised higher as businesses boost investment in AI

Source: Reuters

The U.S. economy grew faster than initially thought in the second quarter, in part driven by business investment in intellectual property such as artificial intelligence, but tariffs on imports continued to cloud the picture.

The upgrade to gross domestic product reported by the Commerce Department on Thursday also reflected upward revisions to consumer spending as well as business investment in equipment. That resulted in a measure of underlying domestic demand also being revised higher.

Given the wild swings in imports stemming from the manner in which President Donald Trump's sweeping tariffs have been implemented, including escalations and 90-day pauses, the GDP report is not a true reflection of the economy's health, economists said. They expected the drag on GDP from import duties to become more evident in the quarters ahead.

"The strength in economic growth last quarter remains a mirage that is based on the fallout from the administration's economic agenda," said Christopher Rupkey, chief economist at FWDBONDS. "Economic growth will slow to stall-speed once the tariff effects on imports wash out in the third quarter."


Read more: https://www.reuters.com/business/us-second-quarter-gdp-revised-higher-businesses-boost-investment-ai-2025-08-28/

---

"THE STRENGTH IN ECONOMIC GROWTH LAST QUARTER REMAINS A MIRAGE..... ECONOMIC GROWTH WILL SLOW TO STALL-SPEED ONCE THE TARIFF EFFECTS ON IMPORTS WASH OUT....."

AND, since these improved numbers come from a tRump administration source I simply can't believe them.