WASHINGTON, DC / RankWire.AI / – The U.S. economy expanded at an annual rate of 2.2% in the second quarter of 2026. The U.S. Bureau of Economic Analysis revised its previous estimate from 1.5%. This update covered economic activity from April through June. Additionally, officials raised the first-quarter growth rate to 2.5% from an earlier 2.1%. The new figures indicate a stronger level of domestic activity than earlier calculations suggested across several key sectors of the economy.
Much of the upward revision was driven by increased investment, consumer expenditure, and government outlays. Consumer purchases and business investments both contributed positively to growth, while higher imports lowered the overall GDP figure. When calculating gross domestic product, imports are subtracted. During the quarter, current-dollar GDP grew at an 8.5% annual pace. Updated data also revised estimates for private inventories, fixed investment, and various household spending categories, offering a broader perspective on economic activity.
Private fixed investment saw upward adjustments due to stronger estimates for nonresidential structures and residential investments. The revised construction data included projects in commercial, healthcare, and data center sectors, affecting nonresidential structures. Consumer expenditure estimates also rose for both goods and services, with recreational goods, vehicles, and recreation services among the segments contributing to the revision. These adjustments collectively pushed the final GDP estimate above the previous second-quarter figure.
Indicators of domestic demand show improvement
Real final sales to private domestic buyers increased at a 4.6% annual rate during the second quarter, reflecting a combination of consumer spending and private fixed investment while excluding several more volatile components of GDP. The earlier estimate had indicated a growth rate of 4.2%. Real gross domestic income grew by 2.6% over the same period. The average of real GDP and real gross domestic income rose to 2.4%, offering further insight into production and income levels across the U.S. economy.
Corporate profits from ongoing production increased by $384 billion in the second quarter. The private services sector contributed a 2.5% increase in real value added, while private goods-producing industries saw a 2.3% gain. The government sector experienced minimal growth, less than 0.1%. Overall, real gross output rose by 5.0%. Services-producing industries grew by 6.0%, goods-producing sectors increased by 3.0%, and government output advanced by 2.6% during this period.
Inflation measures remain high
The personal consumption expenditures price index climbed at a 5.0% annual rate in the second quarter, slightly below the previous estimate of 5.3%. The core PCE, which excludes food and energy prices, rose at a 3.3% annual rate, down from the earlier 3.6%. The gross domestic purchases price index increased by 5.6%. These quarterly figures are reported at seasonally adjusted annual rates by the U.S. Bureau of Economic Analysis, and differ from the year-over-year inflation rates.
Economic growth showed regional variation during the second quarter. Real GDP rose in 44 states and the District of Columbia. New York experienced a 4.0% increase, while West Virginia saw a 2.3% decline. Personal income in current dollars increased by $314.3 billion, a 4.7% annual rate. Personal income expanded in 49 states and the District of Columbia. These latest regional and national figures incorporate the agency’s 2026 updates to its economic accounts.
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