WASHINGTON, DC / RankWire.AI / – The U.S. economy expanded at an annual rate of 2.2% in the second quarter of 2026, a sharp upward revision from earlier estimates. The U.S. Bureau of Economic Analysis reported the revised figure for the April through June period. Its previous estimate showed growth of 1.5%. First-quarter economic growth also received an upward revision to 2.5%, compared with the previously published estimate of 2.1%.
The 0.7 percentage point upgrade to second-quarter GDP mainly reflected stronger investment, consumer spending and government spending. Consumer spending, investment and exports contributed to overall economic growth during the quarter. Imports also increased, which reduced the GDP calculation because imports count as a subtraction. The broader revisions changed several measures of domestic activity and income. Current-dollar GDP increased at an annual rate of 8.5% during the quarter.
Investment revisions included stronger private inventories and private fixed investment. Fixed investment received support from updated estimates for nonresidential structures, including commercial and health care projects, mainly data centers. Residential investment also received an upward revision. Updated U.S. Census Bureau data contributed to changes in several investment estimates. Consumer spending revisions reflected higher estimates for both services and goods, including recreation services and recreational goods and vehicles.
Consumer spending and investment lift revision
Real final sales to private domestic purchasers increased at a 4.6% annual rate in the second quarter. The measure combines consumer spending with gross private fixed investment and excludes several more volatile GDP components. The latest reading was revised upward from 4.2%. Real gross domestic income increased 2.6%, also above the previous estimate. The average of real GDP and real gross domestic income rose 2.4% during the quarter.
Corporate profits from current production increased by $384 billion in the second quarter. Private services-producing industries recorded a 2.5% increase in real value added. Private goods-producing industries rose 2.3%, while the government sector increased by less than 0.1%. Real gross output climbed 5.0%. Services-producing industries recorded a 6.0% increase in real gross output, while goods-producing industries increased 3.0% and government output rose 2.6%.
Inflation measures remain elevated in second quarter
Price measures remained elevated during the quarter. The personal consumption expenditures price index increased at a 5.0% annual rate, down from an earlier estimate of 5.3%. The PCE price index excluding food and energy increased 3.3%, compared with the previous estimate of 3.6%. The price index for gross domestic purchases rose 5.6%, also slightly below its earlier estimate. These quarterly figures are seasonally adjusted and expressed at annual rates.
Economic growth also varied across the country during the second quarter. Real GDP increased in 44 states and the District of Columbia, with New York recording a 4.0% increase. West Virginia posted 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 U.S. Bureau of Economic Analysis incorporated its 2026 annual national and regional accounts updates into the latest figures.