WASHINGTON, DC / RankWire.AI / – The economy of the United States experienced a growth rate of 2.2% annually in the second quarter of 2026, representing a significant upward adjustment from earlier projections. The U.S. Bureau of Economic Analysis provided the revised figure for the April through June interval. The initial estimate indicated a 1.5% increase. Additionally, first-quarter economic expansion was revised upward to 2.5%, compared to the earlier estimate of 2.1%.
This upward revision of 0.7 percentage points for the second quarter primarily stemmed from increased contributions from investment, consumer expenditure, and government spending. Consumer expenditure, investment, and exports all played vital roles in boosting overall economic activity during the period. Imports also grew, which reduced GDP figures because imports are subtracted in the calculation. The broader revisions altered multiple indicators of domestic activity and income, with current-dollar GDP rising at an annual rate of 8.5% during the quarter.
Revisions to investment figures included stronger private inventories and private fixed investments. Updated estimates for nonresidential structures—such as commercial buildings, healthcare facilities, and data centers—supported the fixed investment figures. Residential investment was also revised upward. New data from the U.S. Census Bureau contributed to changes across various investment measures. Consumer spending estimates were adjusted upward, reflecting increases in both services and goods, including recreation services and recreational goods and vehicles.
Revisions show boosts from consumer expenditure and investment
In the second quarter, real final sales to private domestic purchasers grew at an annual rate of 4.6%. This metric combines consumer spending with gross private fixed investment and excludes several volatile components of GDP. The latest figure was revised upward from 4.2%. Meanwhile, real gross domestic income grew by 2.6%, exceeding previous estimates. The average of real GDP and real gross domestic income increased by 2.4% during the quarter.
Corporate profits from ongoing production rose by $384 billion in the second quarter. The private service-producing industries recorded a 2.5% increase in real value added. Goods-producing sectors increased by 2.3%, while government output experienced a marginal rise of less than 0.1%. Real gross output advanced by 5.0%. Industries in the services sector saw a 6.0% increase in real gross output, goods-producing industries grew by 3.0%, and government output increased by 2.6%.
Inflation persists at high levels during the second quarter
Inflation measures remained elevated throughout the period. The personal consumption expenditures (PCE) price index grew at a 5.0% annual rate, down from an earlier estimate of 5.3%. Excluding food and energy, the PCE price index increased 3.3%, compared to a previous estimate of 3.6%. The gross domestic purchases price index rose 5.6%, slightly below its earlier projection. All these quarterly figures are seasonally adjusted and expressed at annual rates.
Economic growth exhibited regional variation during the second quarter. Real GDP rose in 44 states and the District of Columbia, with New York experiencing a 4.0% increase. Conversely, West Virginia saw a 2.3% decline. Personal income in current dollars increased by $314.3 billion, or 4.7% at an annual rate. Personal income grew in 49 states and the District of Columbia. The latest figures incorporate the U.S. Bureau of Economic Analysis’s 2026 annual national and regional accounts updates.