The US economy demonstrated remarkable resilience in the second quarter of 2025, with revised government data revealing a stronger-than-expected growth rate. Gross Domestic Product (GDP) expanded at an annualized rate of 3.8% from April through June, surpassing the earlier estimate of 3.3%. This marked the fastest pace of growth in nearly two years, a significant rebound from the 0.6% contraction experienced in the first quarter. The surge was primarily driven by robust consumer spending, which increased by 2.5% year-on-year, up from a prior estimate of 1.6%, and a decline in imports. Despite the positive momentum, economists highlighted lingering uncertainties, particularly concerning the impact of former President Donald Trump’s tariffs and broader policy challenges. Retail sales also outperformed expectations, rising 0.6% in August, underscoring the resilience of American consumers. However, the labor market showed signs of strain, with only 22,000 jobs added in August and the unemployment rate edging up to 4.3%. On a brighter note, initial unemployment claims dropped to their lowest level since July, suggesting potential stabilization in the job market. Analysts remain cautiously optimistic, noting that while economic momentum has held steady, the long-term effects of tariffs and policy uncertainty could lead to slower growth and higher inflation.