"It was the strongest showing since the fall of 2023, underscoring the economy's resilience despite high borrowing costs and persistent inflation. It comes amid a flurry of revisions of major economic data, including a definitive finding that nearly 1 million fewer jobs were created between March 2024 and March 2025, which one analyst saw as proof that AI is "automating away" entry-level jobs."
"Economists point to Americans' continued spending power as a central force behind the unexpected strength. Gina Bolvin, President of Bolvin Wealth Management Group in Boston, highlighted the key role of households. "With jobless claims and retail sales both coming in stronger than expected, it's no surprise that GDP has also exceeded forecasts," Bolvin said in a statement to Fortune. Her comments reflect broad confidence that consumer activity, buoyed by a hot labor market and stock market gains, is keeping the expansion intact."
Gross domestic product grew at a 3.8% annual rate in the April–June period, exceeding earlier government estimates and marking the strongest quarterly growth since fall 2023. The upward revision reflects stronger consumer demand and increased business investment, signaling that households and companies continue to drive growth even under tightening monetary conditions. Revisions to other economic data show nearly 1 million fewer jobs created between March 2024 and March 2025, with at least one analyst linking the change to AI automating entry-level roles. Economists cite robust consumer spending and a hot labor market, while some strategists caution against complacency in markets.
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