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 disclosed this updated figure for April through June, after initially estimating growth at 1.5%. Additionally, the first quarter’s economic expansion was revised higher to 2.5%, compared to the prior estimate of 2.1%.
This upward adjustment of 0.7 percentage points in second-quarter GDP mainly stems from increased investment, consumer expenditure, and government outlays. Consumer spending, investment, and exports played key roles in boosting overall economic activity during the period. Imports also rose, which slightly reduced GDP since imports are subtracted in the calculation. The broader revisions affected various domestic activity and income indicators. During the quarter, current-dollar GDP grew at an annual rate of 8.5%.
Revisions to investment figures included increased private inventories and private fixed investment. Estimates for nonresidential structures—such as commercial and healthcare projects, notably data centers—were updated to support the growth. Residential investment was also revised upward, with new data from the U.S. Census Bureau contributing to these adjustments. Consumer spending revisions reflected higher estimates for both services and goods, including recreation services, recreational goods, and vehicles.
Consumer and investment contributions drive upward revisions
In the second quarter, real final sales to private domestic purchasers grew at an annual rate of 4.6%. This metric combines consumer spending with gross private fixed investment while excluding some more volatile GDP components. The figure was revised upward from 4.2%. Meanwhile, real gross domestic income increased by 2.6%, surpassing previous estimates. The average of real GDP and real gross domestic income increased by 2.4% in the same period.
Corporate profits from current production rose by $384 billion during the second quarter. Private service-producing industries saw a 2.5% increase in real value added, while private goods-producing sectors grew by 2.3%. The government sector’s growth was less than 0.1%. Real gross output climbed 5.0%, with services-producing industries experiencing a 6.0% rise, goods-producing industries increasing 3.0%, and government output expanding 2.6%.
Inflation indicators stay high in the second quarter
Inflation measures persisted at elevated levels throughout the period. The personal consumption expenditures price index increased at a 5.0% annual rate, down slightly from an earlier estimate of 5.3%. Excluding food and energy, the PCE price index rose by 3.3%, compared to a previous estimate of 3.6%. The gross domestic purchases price index increased 5.6%, marginally below its initial estimate. All these quarterly figures are seasonally adjusted and expressed at annual rates.
Economic growth exhibited regional variation in the second quarter. Real GDP expanded in 44 states plus the District of Columbia, with New York experiencing a 4.0% rise. Conversely, West Virginia saw a decline of 2.3%. Current-dollar personal income rose by $314.3 billion, or 4.7% at an annual rate. Personal income increased 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.