WASHINGTON, DC / RankWire.AI / – The second quarter of 2026 saw the US economy grow at an annualized rate of 2.2%, a notable upward revision from previous forecasts. The U.S. Bureau of Economic Analysis announced the updated figure for April through June. Initially, the estimate indicated a growth of 1.5%. Additionally, the first quarter’s economic expansion was revised upward to 2.5% from the earlier 2.1% estimate.
The upward adjustment of 0.7 percentage points for the second quarter’s GDP mainly resulted from increased contributions from investment, consumer expenditure, and government outlays. Consumer spending, investment, and exports played key roles in boosting the economy during this period. Imports also grew, which had a negative impact on the GDP calculation because imports are subtracted. The broader revisions affected multiple indicators of domestic activity and income. During the quarter, current-dollar GDP grew at an annual rate of 8.5%.
Revisions to investment data included stronger private inventories and increased private fixed investment. This supported fixed investment figures, especially with updated estimates for nonresidential structures such as commercial and healthcare projects, primarily data centers. Residential investment was also revised upward. These changes were partly driven by updated U.S. Census Bureau data, which influenced various investment estimates. Consumer spending revisions reflected higher valuations for both goods and services, including recreational services, recreational goods, and vehicles.
Enhanced consumer spending and investment contribute to upward revisions
In the second quarter, real final sales to private domestic purchasers grew at a 4.6% annual rate. This metric combines consumer expenditure with gross private fixed investment, excluding several more volatile components of GDP. It was revised upward from 4.2%. Meanwhile, real gross domestic income increased by 2.6%, surpassing the previous estimate. 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 services-producing industries experienced a 2.5% increase in real value added, while private goods-producing industries grew by 2.3%. The government sector saw a minimal increase of less than 0.1%. Overall, real gross output increased by 5.0%, with services-producing industries expanding by 6.0%, goods-producing industries by 3.0%, and government output by 2.6%.
Inflation indicators remain high during the second quarter
Inflation measures persisted at elevated levels for the quarter. The personal consumption expenditures price index rose at a 5.0% annual rate, down slightly from the initial estimate of 5.3%. The PCE price index excluding food and energy increased by 3.3%, compared to an earlier estimate of 3.6%. The gross domestic purchases price index increased by 5.6%, also marginally below its previous forecast. These figures are seasonally adjusted and presented at annualized rates.
Economic growth exhibited regional variation during the second quarter. Real GDP expanded in 44 states and the District of Columbia, with New York recording a 4.0% increase. Conversely, West Virginia saw a 2.3% decline. Current-dollar personal income grew by $314.3 billion, or 4.7% at an annual rate. Personal income levels rose across 49 states and the District of Columbia. The U.S. Bureau of Economic Analysis incorporated the 2026 national and regional accounts updates into these latest figures.