{"id":13906,"date":"2025-09-04T14:57:17","date_gmt":"2025-09-04T14:57:17","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=13906"},"modified":"2025-09-04T15:16:52","modified_gmt":"2025-09-04T15:16:52","slug":"the-september-rate-cut-wont-have-a-big-impact-2","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/the-september-rate-cut-wont-have-a-big-impact-2\/","title":{"rendered":"What Can Investors Take Away From Revised Q2 GDP Numbers?"},"content":{"rendered":"\n<p><em>Caroline H. from Charleston, SC asks:<\/em><strong><em> <\/em><\/strong>Hi Mitch, I saw that the U.S. GDP number was recently revised higher. It seems like there are a lot of revisions happening these days, so I\u2019m not sure if this is the final-final number or if there will be another change. Regardless, what\u2019s your read on this revision? Good news?&nbsp;<\/p>\n\n\n\n<p><strong>Mitch\u2019s Response:<\/strong>&nbsp;<\/p>\n\n\n\n<p>That\u2019s a keen observation you made about the U.S. GDP headline number. Last week, the Bureau of Economic Analysis released its \u201csecond\u201d estimate of Q2 U.S. GDP, which showed the U.S. economy grew faster than initially reported. The annualized growth rate was revised from 3.0% to 3.3%. That\u2019s a pretty meaningful adjustment.<sup>1<\/sup>&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"936\" height=\"294\" src=\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2025\/09\/image.png\" alt=\"\" class=\"wp-image-13909\" srcset=\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2025\/09\/image.png 936w, https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2025\/09\/image-300x94.png 300w, https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2025\/09\/image-768x241.png 768w\" sizes=\"auto, (max-width: 936px) 100vw, 936px\" \/><figcaption class=\"wp-element-caption\"><strong><em>BEA<sup>2<\/sup><\/em><\/strong>\u00a0<\/figcaption><\/figure>\n\n\n\n<p><span style=\"text-decoration: underline;\"><a href=\"https:\/\/go.steadyinvestor.com\/navigating-market-volatility-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_navigating_volatility_zim_09_04_2025&amp;content=navigating_volatility\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/navigating-market-volatility-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_navigating_volatility_zim_09_04_2025&amp;content=navigating_volatility\"><strong>Market Headlines Keep Changing. Is Your Portfolio Ready?<\/strong>\u00a0<\/a><\/span><\/p>\n\n\n\n<p>Economic data and market signals are constantly being revised, sending mixed messages to investors. One week, growth looks stronger than expected, and the next, the outlook shifts again. For many, it can feel like the ground is always moving.\u00a0\u00a0<\/p>\n\n\n\n<p>That\u2019s why I\u2019m offering our free guide, <a href=\"https:\/\/go.steadyinvestor.com\/navigating-market-volatility-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_navigating_volatility_zim_09_04_2025&amp;content=navigating_volatility\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/navigating-market-volatility-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_navigating_volatility_zim_09_04_2025&amp;content=navigating_volatility\"><strong><em><span style=\"text-decoration: underline;\">Navigating Market Volatility: 4 Principles for Staying the Course<sup>3<\/sup>.<\/span><\/em><\/strong> <\/a>It shares the habits and mindset that can help keep your portfolio steady, no matter how uncertain the markets become. It also covers topics such as:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sharp market declines and corrections are a normal part of investing\u00a0<\/li>\n\n\n\n<li>The best market days come unexpectedly (often within days or weeks of the worst days)\u00a0<\/li>\n\n\n\n<li>Trying to pick market tops and bottoms is nearly impossible\u00a0<\/li>\n\n\n\n<li>Trust your strategy and discipline, not the headlines\u00a0<\/li>\n\n\n\n<li><strong><em>Plus, more insights and assistance to help you keep your investment strategy on course.<\/em><\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p>If you have $500,000 or more to invest, get your free guide today!&nbsp;<\/p>\n\n\n\n<p><span style=\"text-decoration: underline;\"><a href=\"https:\/\/go.steadyinvestor.com\/navigating-market-volatility-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_navigating_volatility_zim_09_04_2025&amp;content=navigating_volatility\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/navigating-market-volatility-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_navigating_volatility_zim_09_04_2025&amp;content=navigating_volatility\"><strong><em>Download Your Free Copy Today: Navigating Market Volatility: 4 Principles for Staying the Course<sup>3<\/sup><\/em><\/strong>\u00a0<\/a><\/span><\/p>\n\n\n\n<p>Before I dive into some of the inner workings of the revision, I think it\u2019s important to add a note here about revisions in general. There has been a big splash in the financial media recently because of the revisions to jobs market data from the summer months, which painted a much weaker picture of the U.S. labor market than previously appreciated. The GDP revision may make it seem like a \u201chere we go again\u201d moment for economic data, but the reality is that revisions are very common and are to be expected. As more data comes in, we should expect the numbers to adjust accordingly.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>Now, regarding the Q2 U.S. GDP revision, what stood out most to me was the upward revisions to business investment. Nonresidential fixed investment rose 5.7% annualized in the second estimate, compared with just 1.9% in the first. A big piece of that was intellectual property products, particularly research and development. R&amp;D alone swung from showing a contraction in the first estimate (-1.9%) to solid growth of 4.3%. That\u2019s a sharp turnaround, and it suggests businesses may not be nearly as downbeat about the future as some (including myself when I saw the \u201cadvance\u201d GDP estimate) assumed.&nbsp;<\/p>\n\n\n\n<p>Consumer spending also came in stronger, especially in healthcare, pharmaceuticals, and food services. And we\u2019re seeing increasingly concrete signs of the AI boom in the data: software investment grew at the fastest quarterly pace since at least 2007. Those figures indicate that both households and businesses are still willing to put money to work, even amid tariff uncertainty and slower job growth.&nbsp;<\/p>\n\n\n\n<p>That said, it\u2019s important not to overstate the strength of the headline. The combined contribution of personal consumption, business investment, and residential real estate, often called \u201ccore domestic demand\u201d, was 1.7% annualized, much lower than the headline 3.3%. Trade swings from earlier tariff-related import activity bolstered the top-line GDP number. So, while the economy is proving resilient, growth is not gangbusters as the headline alone might suggest.&nbsp;<\/p>\n\n\n\n<p>From an investor\u2019s perspective, this report is essentially old news to markets, since revisions don\u2019t typically change the overall picture. But it does reinforce an important point: businesses are still investing, households are still spending, and the economy continues to move forward despite tariff worries and softening confidence surveys. Markets seem to be reflecting this resilience.&nbsp;<\/p>\n\n\n\n<p>Revisions may not change the market\u2019s immediate path, but they highlight how quickly the story can shift. For investors, the challenge is knowing how to stay positioned when the numbers move and the headlines follow.&nbsp;<\/p>\n\n\n\n<p>That\u2019s why we\u2019re offering a free guide: <em>Navigating Market Volatility: 4 Principles for Staying the Course<\/em>. Inside, you\u2019ll find:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sharp market declines and corrections are a normal part of investing\u00a0<\/li>\n\n\n\n<li>The best market days come unexpectedly (often within days or weeks of the worst days)\u00a0<\/li>\n\n\n\n<li>Trying to pick market tops and bottoms is nearly impossible\u00a0<\/li>\n\n\n\n<li>Trust your strategy and discipline, not the headlines\u00a0<\/li>\n\n\n\n<li><strong><em>Plus, more insights and assistance to help you keep your investment strategy on course.<\/em><\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p>If you have $500,000 or more to invest, get your free guide today!&nbsp;<\/p>\n\n\n\n<p><span style=\"text-decoration: underline;\"><a href=\"https:\/\/go.steadyinvestor.com\/navigating-market-volatility-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_navigating_volatility_zim_09_04_2025&amp;content=navigating_volatility\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/navigating-market-volatility-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_navigating_volatility_zim_09_04_2025&amp;content=navigating_volatility\"><strong><em>Download Your Free Copy Today: Navigating Market Volatility: 4 Principles for Staying the Course<sup>4<\/sup><\/em><\/strong>\u00a0<\/a><\/span><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A second revision to the U.S. GDP headline number for Q2 shows the economy grew faster than initially reported. But a closer look shows that, while resilient, the economy is not booming. <\/p>\n","protected":false},"author":3,"featured_media":13563,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66,71],"tags":[],"class_list":["post-13906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitchs-mailbox","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=13906"}],"version-history":[{"count":3,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13906\/revisions"}],"predecessor-version":[{"id":13911,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13906\/revisions\/13911"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media\/13563"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=13906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=13906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=13906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}