**Gross Domestic Product (GDP) and Corporate Profits – Q2 2025 Update**
The U.S. Bureau of Economic Analysis released its second estimate for gross domestic product (GDP) growth in the second quarter of 2025, revealing that real GDP increased at an annual rate of 2.3 percent. This growth primarily reflected increases in consumer spending, nonresidential fixed investment, and exports, offset slightly by declines in residential investment and private inventory investment. The updated estimate also showed that corporate profits, considered a key indicator of business health, saw a preliminary increase this quarter following a previous period of stagnation.
The report highlighted continued momentum in consumer spending, particularly on goods and services, contributing positively to economic growth. At the same time, research and development spending and investments in equipment supported business growth. Despite inflationary pressures and uncertainties in some sectors, the preliminary data suggest the U.S. economy remains on a steady path, buoyed by both individual and corporate confidence.
**Implications for Arizona Real Estate Investors**
For real estate investors in Arizona, steady GDP growth and rising corporate profits bode well for property values and rental demand across the state. As businesses grow and consumer confidence strengthens, Arizona’s job market and population are likely to expand, fueling demand for both residential and commercial real estate. Investors should watch these economic indicators closely, as a strong national economy often translates into greater investment opportunities and stability within Arizona’s dynamic real estate market.
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