WASHINGTON, DC / RankWire.AI / – The second quarter of 2026 saw the U.S. economy grow at an annualized rate of 2.2%, representing a significant upward revision from earlier estimates. The U.S. Bureau of Economic Analysis released the updated figure for the period spanning April through June. Initial estimates had indicated a growth rate of 1.5%. Additionally, first-quarter economic expansion was revised upward to 2.5%, compared to the previously reported 2.1%.
This 0.7 percentage point increase in the second-quarter GDP largely resulted from stronger contributions from investment, consumer expenditure, and government outlays. Consumer spending, investment, and exports all played key roles in driving the economy during the quarter. Imports also saw an increase, which had a dampening effect on GDP since imports are counted as a subtraction in the calculation. The broad revisions impacted various indicators of domestic activity and income, with current-dollar GDP expanding at an 8.5% annual rate during the period.
Revisions related to investment reflected more robust private inventories and private fixed investments. The data supported increased estimates for nonresidential structures such as commercial buildings, healthcare facilities, and notably, data centers. Residential investment also saw an upward revision. Changes in multiple investment components were influenced by updated data from the U.S. Census Bureau. Consumer spending figures were also revised higher, incorporating increased estimates for both services and goods, including recreation services and recreational goods and vehicles.
Consumer and investment revisions bolster economic growth figures
The measure of real final sales to private domestic purchasers rose at a 4.6% annual pace in the second quarter. This indicator combines consumer expenditure with gross private fixed investment and excludes several more volatile GDP components. The latest estimate marked an upward revision from 4.2%. Meanwhile, real gross domestic income grew by 2.6%, also revised upward from earlier figures. Averaging the increases in real GDP and real gross domestic income yields a 2.4% rise for the quarter.
Corporate profits from ongoing production increased by $384 billion in the same period. Private industries focused on services experienced a 2.5% rise in real value added. Those producing goods saw a 2.3% increase, while the government sector’s growth was less than 0.1%. Real gross output climbed by 5.0%. Industries providing services saw a 6.0% increase in real gross output, goods-producing industries grew by 3.0%, and government output rose 2.6% during the quarter.
Inflation remains high despite some easing in the second quarter
Price indices continued to reflect elevated levels throughout the quarter. The personal consumption expenditures (PCE) price index increased at a 5.0% annual rate, slightly lower than the previous estimate of 5.3%. The PCE price index excluding food and energy rose 3.3%, down from 3.6%. The gross domestic purchases price index increased 5.6%, also marginally below its earlier estimate. These figures are seasonally adjusted and presented at annualized rates.
Economic growth varied across the U.S. during the second quarter. Real GDP rose in 44 states and the District of Columbia, with New York experiencing a 4.0% increase. Conversely, West Virginia saw a decline of 2.3%. Current-dollar personal income grew by $314.3 billion, or 4.7% at an annualized rate. Personal income increased in 49 states plus the District of Columbia. The U.S. Bureau of Economic Analysis integrated its 2026 annual national and regional accounts updates into these latest figures.