Economy grew a solid 2.2% in the second quarter, government says, upgrading previous estimate

The U.S. economy expanded at a 2.2% annual pace in the second quarter (April through June), the Commerce Department reported Wednesday, upgrading its prior estimate of 1.5%. Growth slowed from 2.5% in the first quarter, but consumer spending and business investment came in stronger than previously thought. Spending rose at a 3.8% annual rate, compared with 0.7% in January–March. Imports, which reduce GDP, surged 12.6% and dragged nearly 1.7 percentage points off the quarter’s growth. Excluding volatile items, a key underlying measure grew 4.6%. AI-related investment supported business spending, while housing investment rose 2.8%. The next GDP estimate for Q3 arrives Oct. 29.