The U.S. Commerce Department’s second estimate shows the economy expanded at a 3.3% annualized pace in the April-to-June quarter, up from the initially reported 3% and ahead of the 3.1% economists had predicted. The upgrade underscores a sharp rebound from the first quarter’s 0.5% contraction and suggests the economy is weathering the sweeping tariffs that took effect in April. The upward revision reflects firmer household demand and a narrower trade gap. Consumer spending, which accounts for roughly 70% of output, grew at a 1.6% rate versus the previously estimated 1.4%. Imports fell 29.8%, adding more than five percentage points to growth, while private investment slumped 13.8%. A core measure that strips out volatile components—final sales to domestic purchasers—rose 1.9%, matching the prior quarter. Price pressures continued to ease, with headline inflation in the report slipping to 2%. Even so, analysts note that the revival rests heavily on trade dynamics and could prove temporary if domestic demand fails to accelerate. Attention now turns to third-quarter indicators for signs that the momentum can be sustained amid higher borrowing costs and persistent policy uncertainty.