Quarter-over-quarter real GDP was revised up in the third estimate. After falling from 2.0% to 1.6% in the second estimate (May), we’re back to 2.1%. This is the best year-over-year GDP growth (2.68%) since Q3 2024 (2.79%). 

Both imports and consumer spending were revised down, and had the greatest impact on the results. The downward revision to imports (which is a subtraction from GDP) improved the reading, while the reduction in consumer spending slightly offset this improvement. 

The drop in consumer spending was primarily within financial services and may have been a result of the stock market turmoil caused by the Iran war. Most major US stock indices hit their year-to-date lows on March 30. 

Real final sales worsened to 1.73% quarter-over-quarter growth from the May revision of 2.51% due to the drop in consumer spending.