WASHINGTON, DC / RankWire.AI / – In the second quarter of 2026, the U.S. economy grew at an annual rate of 2.2%, marking a significant upward adjustment from earlier projections. The U.S. Bureau of Economic Analysis released the revised figures for April through June, which now show a growth rate notably higher than the previous estimate of 1.5%. Additionally, the first quarter’s economic expansion was revised upward to 2.5% from the initially reported 2.1%.
The upward revision of 0.7 percentage points for the second quarter’s GDP mainly reflected stronger performances in investment, consumer expenditure, and government spending. Consumer spending, investment, and exports played a key role in the overall economic growth during this period. Imports also saw an increase, which slightly reduced GDP calculations since imports are subtracted in the equation. The broader revisions affected various measures of domestic activity and income, with current-dollar GDP rising at an annual rate of 8.5% for the quarter.
Revisions related to investment included increased private inventories and private fixed investment. The support for fixed investment was bolstered by updated estimates for nonresidential structures such as commercial, healthcare, and data center projects. Residential investment also experienced an upward revision. Updated data from the U.S. Census Bureau contributed to the changes in multiple investment categories. Consumer spending estimates also increased, reflecting higher figures for both services and goods, including recreation services and recreational goods and vehicles.
Enhanced consumer spending and investment contribute to upward revision
Real final sales to private domestic purchasers grew at a 4.6% annual rate in the second quarter. This measure combines consumer expenditure with gross private fixed investment, while excluding several more volatile components of GDP. The previous estimate was revised upward from 4.2%. Additionally, real gross domestic income increased by 2.6%, surpassing earlier projections. The average of real GDP and real gross domestic income rose by 2.4% during this period.
Corporate profits from current production rose by $384 billion in the second quarter. Private service-providing industries experienced a 2.5% increase in real value added. Private goods-producing industries increased by 2.3%, while the government sector saw less than a 0.1% rise. Real gross output went up by 5.0%. Specifically, services-producing industries grew by 6.0% in real gross output, goods-producing industries by 3.0%, and government output by 2.6%.
Inflation metrics remain high during the second quarter
Price indicators stayed elevated throughout the quarter. The personal consumption expenditures price index rose at a 5.0% annual rate, slightly below the earlier estimate of 5.3%. The PCE price index excluding food and energy increased by 3.3%, compared to the previous figure of 3.6%. The gross domestic purchases price index also increased by 5.6%, marginally lower than the earlier estimate. All these figures are seasonally adjusted and expressed at annual rates.
Economic growth displayed regional disparities in the second quarter. Real GDP expanded in 44 states along with the District of Columbia, with New York recording a 4.0% increase. Meanwhile, West Virginia experienced a 2.3% decline. Current-dollar personal income increased by $314.3 billion, or 4.7% at an annual rate. Personal income rose 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.