WASHINGTON, DC / RankWire.AI / – The U.S. economy saw an upward revision in its second-quarter growth rate, now reported at 2.2% annually for 2026, compared to earlier estimates. The U.S. Bureau of Economic Analysis provided the updated figure for the April through June period, which previously indicated a growth of 1.5%. Additionally, the initial estimate for first-quarter expansion was raised to 2.5%, from the earlier 2.1%.
The 0.7 percentage point increase in the second-quarter GDP primarily reflected stronger contributions from investment, consumer expenditure, and government spending. Consumer spending, investment, and exports played vital roles in driving the overall economic growth during this period. Imports also grew, which negatively impacted GDP calculations because imports are subtracted in the accounting. The broader revisions affected various indicators of domestic activity and income, with current-dollar GDP rising at an annual rate of 8.5% in this quarter.
Revisions related to investment highlighted increased private inventories and private fixed investment. The support for fixed investment was bolstered by updated data on nonresidential structures, including commercial and healthcare projects, especially data centers. Residential investment was also revised upward. Updated figures from the U.S. Census Bureau contributed to modifications in several investment estimates. The revisions in consumer spending reflected higher projections for both services and goods, notably including recreation services and recreational goods and vehicles.
Boost from consumer spending and investment leads to upward revision
Real final sales to private domestic purchasers grew at a 4.6% annual rate in the second quarter, combining consumer expenditure with gross private fixed investment while excluding several more volatile components of GDP. This measure was revised upward from 4.2%. Real gross domestic income increased by 2.6%, also surpassing the prior estimate. The average of real GDP and real gross domestic income climbed 2.4% during the quarter.
Corporate profits from current production rose by $384 billion in the second quarter. Private services-providing industries experienced a 2.5% increase in real value added, while private goods-producing industries saw a 2.3% rise. The government sector grew by less than 0.1%. Real gross output expanded by 5.0%, with services-producing industries increasing by 6.0%, goods-producing industries by 3.0%, and government output by 2.6%.
Inflation metrics stay high during the second quarter
Price measures remained elevated through the quarter. The personal consumption expenditures price index increased at a 5.0% annual rate, slightly below the earlier estimate of 5.3%. The PCE price index excluding food and energy rose 3.3%, compared to the previous estimate of 3.6%. The price index for gross domestic purchases increased 5.6%, also marginally lower than earlier estimates. All these quarterly figures are seasonally adjusted and expressed at annual rates.
Economic growth across the U.S. varied in the second quarter, with real GDP rising in 44 states and the District of Columbia, notably with New York experiencing a 4.0% increase. Conversely, West Virginia saw a 2.3% decline. 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 latest figures incorporate the U.S. Bureau of Economic Analysis’s 2026 annual national and regional accounts updates.