WASHINGTON, DC / RankWire.AI / – The second quarter of 2026 saw the US economy grow at an annual rate of 2.2%, a notable upward revision from earlier projections. The U.S. Bureau of Economic Analysis reported the adjusted figure for the April through June period. Previously, the estimate indicated a growth of 1.5%. Additionally, the first quarter’s growth was revised upward to 2.5%, up from the initial estimate of 2.1%.
The increase of 0.7 percentage points in second-quarter GDP mainly resulted from stronger investment, consumer expenditure, and government spending. Consumer spending, investment, and exports all played significant roles in driving overall economic expansion during the quarter. Imports also grew, which lessened the GDP figure because imports are subtracted in calculations. The broader revisions impacted various indicators of domestic activity and income. During this period, current-dollar GDP grew at an annualized rate of 8.5%.
Revisions to investment data reflected increased private inventories and private fixed investment. Support for fixed investment came from updated estimates for nonresidential structures, including commercial and healthcare projects, mainly data centers. Residential investment also saw an upward adjustment. New data from the U.S. Census Bureau contributed to changes in several investment estimates. The revisions to consumer spending accounted for higher estimates across services and goods, notably recreation services and recreational goods and vehicles.
Boost from Consumer Spending and Investment Pushes Revision
Real final sales to private domestic purchasers rose at a 4.6% annual rate in the second quarter. This measure combines consumer expenditure with gross private fixed investment, excluding several more volatile components of GDP. The recent figure was revised upward from 4.2%. Real gross domestic income increased by 2.6%, surpassing the previous estimate. The average of real GDP and real gross domestic income grew 2.4% during the quarter.
Corporate profits from current production rose by $384 billion in the second quarter. Private services-producing industries experienced a 2.5% increase in real value added, while private goods-producing industries grew by 2.3%. The government sector saw a minimal increase of less than 0.1%. Real gross output increased by 5.0%. Services-producing industries recorded a 6.0% rise in real gross output, with goods-producing industries up 3.0% and government output increasing by 2.6%.
Inflation Indicators Remain Elevated in the Second Quarter
Price measures stayed high during the quarter. The personal consumption expenditures price index grew at a 5.0% annual rate, slightly lower than the earlier estimate of 5.3%. The PCE price index excluding food and energy increased by 3.3%, compared to the previous estimate of 3.6%. The price index for gross domestic purchases rose 5.6%, also marginally below its earlier projection. These figures are seasonally adjusted and expressed on an annual basis.
Economic growth also displayed variation across the country during the second quarter. Real GDP rose in 44 states and the District of Columbia, with New York experiencing a 4.0% increase. West Virginia, however, declined by 2.3%. Current-dollar personal income increased by $314.3 billion, or 4.7% at an annual rate. Personal income grew in 49 states and the District of Columbia. The U.S. Bureau of Economic Analysis incorporated its 2026 annual national and regional accounts updates into these latest figures.