WASHINGTON, DC / RankWire.AI / – The second quarter of 2026 saw the U.S. economy grow at an annual rate of 2.2%, significantly revised upward from earlier projections. The U.S. Bureau of Economic Analysis announced the updated figure for the April through June period. Initially, growth was estimated at 1.5%. Additionally, the first-quarter GDP was revised upward to 2.5%, from the prior estimate of 2.1%.
The 0.7 percentage point increase in the second-quarter GDP primarily reflected stronger contributions from investment, consumer expenditure, and government outlays. During this period, consumer spending, investment, and exports played a key role in driving economic expansion. Imports also rose, which slightly lowered the GDP figure since imports are subtracted in the calculation. The broad revisions impacted several metrics of domestic activity and income, with current-dollar GDP growing at an annual rate of 8.5% during the quarter.
Revisions to investment included increased private inventories and private fixed investments. Support for fixed investment came from updated estimates related to nonresidential structures, such as commercial and healthcare projects, with a focus on data centers. Residential investment was also adjusted upward. Changes in multiple investment estimates were influenced by revised data from the U.S. Census Bureau. Consumer spending revisions reflected higher estimates for both services and goods, including recreation services and recreational goods and vehicles.
Revisions highlight strength in consumer spending and investment
In the second quarter, real final sales to private domestic purchasers rose at a 4.6% annual rate. This measure combines consumer expenditure with gross private fixed investment, excluding several more volatile GDP components. The latest figure was revised upward from 4.2%. Real gross domestic income also increased by 2.6%, surpassing previous estimates. The average of real GDP and real gross domestic income grew 2.4% during the period.
Corporate profits from current production saw an increase of $384 billion in the second quarter. Private services-producing industries experienced a 2.5% growth in real value added, while private goods-producing industries grew by 2.3%. The government sector’s contribution was less than 0.1%. Real gross output expanded by 5.0%, with services-producing industries rising by 6.0% in real gross output, goods-producing industries up by 3.0%, and government output increasing by 2.6%.
Inflation indicators stay high during the second quarter
Price measures persisted at elevated levels throughout the quarter. The personal consumption expenditures price index rose at a 5.0% annual rate, slightly below the previous estimate of 5.3%. The PCE price index excluding food and energy increased by 3.3%, down from an earlier estimate of 3.6%. The gross domestic purchases price index increased by 5.6%, also marginally lower than previously projected. All these quarterly figures are seasonally adjusted and annualized.
Economic growth showed regional variation during the second quarter. Real GDP expanded in 44 states and the District of Columbia, with New York experiencing a 4.0% increase. Conversely, West Virginia declined by 2.3%. Personal income in current dollars grew by $314.3 billion, or 4.7% at an annual rate. In 49 states and the District of Columbia, personal income also increased. The U.S. Bureau of Economic Analysis incorporated its 2026 annual national and regional accounts updates into these latest figures.