WASHINGTON, DC / RankWire.AI / – The U.S. economy experienced a 2.2% annual expansion during the second quarter of 2026, marking a significant upward adjustment from earlier projections. The U.S. Bureau of Economic Analysis announced the updated figure for April through June, revising the initial estimate of 1.5%. Additionally, the first-quarter growth was revised upward to 2.5%, compared to the previously reported 2.1%.
This 0.7 percentage point increase in second-quarter GDP primarily reflected gains in investment, consumer expenditure, and government outlays. Contributing to overall economic growth, consumer spending, investment, and exports all played a role. Imports also rose, which decreased GDP because imports are subtracted in the calculation. The broader revisions altered several measures of domestic activity and income, with current-dollar GDP rising at an annual rate of 8.5% during the period.
Revisions to investment included stronger private inventories and private fixed investment, supported by updated estimates for nonresidential structures such as commercial, healthcare, and data center projects. Residential investment was also revised upward. Changes in several investment estimates were driven by updated data from the U.S. Census Bureau. Revisions to consumer spending reflected increased estimates for both services and goods, including recreation services and recreational goods and vehicles.
Enhancements in consumer spending and investment drive upward revision
Real final sales to private domestic purchasers grew at an annual rate of 4.6% in the second quarter. This measure combines consumer spending with gross private fixed investment, excluding several volatile components of GDP. The latest figure was revised upward from 4.2%. Meanwhile, real gross domestic income increased by 2.6%, also surpassing previous estimates. The average of real GDP and real gross domestic income rose by 2.4% in the same period.
Corporate profits from current production increased by $384 billion during the second quarter. Private service-producing industries experienced a 2.5% rise in real value added, while private goods-producing sectors grew by 2.3%. The government sector saw a marginal increase of less than 0.1%. Real gross output, which measures total value of goods and services produced, climbed by 5.0%. Specifically, services industries saw a 6.0% increase in real gross output, goods-producing industries grew by 3.0%, and government output expanded by 2.6%.
Inflation indicators stay elevated through second quarter
Price measures remained high during this period. The personal consumption expenditures price index rose at a 5.0% annual rate, slightly below the earlier estimate of 5.3%. The PCE price index excluding food and energy increased by 3.3%, down from 3.6%. The gross domestic purchases price index increased by 5.6%, also slightly lower than previous estimates. All figures are seasonally adjusted and expressed at annual rates.
Economic growth demonstrated regional variation in the second quarter. Real GDP expanded in 44 states and the District of Columbia, with New York experiencing a 4.0% increase. Conversely, West Virginia experienced a decline of 2.3%. Current-dollar personal income grew by $314.3 billion, representing a 4.7% annual increase. Personal income rose in 49 states and the District of Columbia. The latest figures incorporate updates from the U.S. Bureau of Economic Analysis’s 2026 annual national and regional accounts.