WASHINGTON, DC / RankWire.AI / – The US economy demonstrated a stronger growth rate of 2.2% on an annual basis during the second quarter of 2026, representing a significant upward adjustment from previous estimates. According to the U.S. Bureau of Economic Analysis, the revised figure pertains to the April through June period, with an earlier estimate indicating a growth of 1.5%. Additionally, the initial estimate of first-quarter economic expansion was also revised upward to 2.5%, compared to the previously reported 2.1%.
This 0.7 percentage point increase in the second-quarter GDP primarily resulted from more robust investment, consumer expenditure, and government outlays. Consumer spending, investment, and exports all played significant roles in supporting overall economic growth during this period. Meanwhile, imports increased as well, which had a negative impact on GDP calculations because imports are subtracted in the computation. The broader adjustments also affected various measures of domestic activity and income, with current-dollar GDP rising at an annualized rate of 8.5% during the quarter.
The revisions related to investment showed increased private inventories and private fixed investment, with support from updated estimates for nonresidential structures such as commercial buildings, healthcare facilities, and particularly data centers. Residential investment was also revised upward, aided by new data from the U.S. Census Bureau that influenced multiple investment figures. Revisions in consumer spending reflected higher estimates for both services and goods, including recreation services and recreational goods and vehicles.
Consumer and investment revisions bolster growth estimates
The measure of real final sales to private domestic purchasers grew at a 4.6% annual rate in the second quarter, combining consumer spending and gross private fixed investment while excluding more volatile components of GDP. This figure was revised upward from 4.2%. Real gross domestic income also rose by 2.6%, exceeding previous estimates, and the average of real GDP and real gross domestic income increased by 2.4% during the same period.
Increased corporate profits from current production amounted to $384 billion in the second quarter. Private industries that produce services experienced a 2.5% rise in real value added, while goods-producing private sectors grew by 2.3%. The government sector saw a minimal increase of less than 0.1%. Overall, real gross output rose by 5.0%, with services-producing industries leading the way with a 6.0% increase, goods-producing sectors growing by 3.0%, and government output climbing 2.6%.
Inflation pressures remain high despite slight moderation in second quarter
Inflation indicators persisted at elevated levels throughout the period. The personal consumption expenditures price index grew at an annual rate of 5.0%, slightly lower than the previous estimate of 5.3%. The PCE price index excluding food and energy increased by 3.3%, down from 3.6%. Similarly, the price index for gross domestic purchases rose 5.6%, marginally less than earlier estimates. All these figures are seasonally adjusted and annualized.
Economic growth trends across the United States varied in the second quarter, with real GDP expanding in 44 states and the District of Columbia; New York experienced a 4.0% increase, whereas West Virginia saw a decline of 2.3%. Personal income in current dollars grew by $314.3 billion, or 4.7% at an annual rate, with increases observed in 49 states plus the District of Columbia. The latest figures incorporate the US Bureau of Economic Analysis’s 2026 annual national and regional accounts updates.