WASHINGTON, DC / RankWire.AI / – The U.S. economy expanded at an annual rate of 2.2% during the second quarter of 2026. The U.S. Bureau of Economic Analysis revised its previous estimate from 1.5%. This update covers economic activity from April through June. Additionally, officials raised the first-quarter growth figure from 2.1% to 2.5%. The new data indicates a stronger domestic economy than earlier estimates suggested across many key areas.
The revision was driven by increased investment, consumer spending, and government expenditure. Consumer purchases and business investments contributed significantly to the upward revision. Higher imports, however, lowered the overall GDP figure, as imports are subtracted in calculations. During the quarter, current-dollar GDP grew at an 8.5% annual rate. The updated figures also adjusted estimates for private inventories, fixed investment, and various household spending categories, offering a broader view of economic activity.
Private fixed investment saw an increase due to stronger estimates for nonresidential structures and residential projects. The revised construction data included commercial and healthcare projects, with data centers influencing nonresidential structures. Consumer spending estimates also rose for both goods and services. Categories like recreational goods, vehicles, and recreation services contributed to the upward revision. These adjustments pushed the final estimate above the previous second-quarter figure.
Indicators of domestic demand strengthen
Real final sales to private domestic purchasers grew at a 4.6% annual rate in the second quarter. This measure combines consumer spending and private fixed investment, excluding some more volatile GDP components. The prior estimate had indicated a 4.2% growth. Real gross domestic income increased by 2.6% during the same period. The average of real GDP and real gross domestic income rose to 2.4%. These figures provide more insight into the production and income generated across the U.S. economy.
Corporate profits from current production rose by $384 billion in the second quarter. Private services industries increased real value added by 2.5%. Private goods-producing industries saw a 2.3% gain, while the government sector grew less than 0.1%. Overall, real gross output went up by 5.0%. Services-producing industries rose 6.0%, goods-producing industries increased 3.0%, and government output grew by 2.6% in the period.
Inflation measures stay high
The personal consumption expenditures price index grew at a 5.0% annual rate during the second quarter. An earlier estimate showed a 5.3% increase. Core PCE, which excludes food and energy, rose by 3.3% annually, down from the previous 3.6%. The gross domestic purchases price index increased 5.6%. The U.S. Bureau of Economic Analysis reports these changes at seasonally adjusted annual rates, differing from year-over-year inflation figures.
Economic growth varied across states in the second quarter. Real GDP rose in 44 states and the District of Columbia. New York saw a 4.0% increase, while West Virginia declined by 2.3%. Personal income in current dollars increased by $314.3 billion, a 4.7% annual rate. Personal income rose in 49 states and the District of Columbia. The latest regional and national figures also include the agency’s 2026 annual updates to its economic accounts.