WASHINGTON, DC / RankWire.AI / – The U.S. economy experienced a 2.2% annual growth rate in the second quarter of 2026. The U.S. Bureau of Economic Analysis revised its previous estimate from 1.5%. This updated figure reflects economic activity from April through June. Additionally, officials increased the first-quarter growth rate to 2.5% from the initial estimate of 2.1%. These revised data points indicate a stronger level of domestic economic activity across several key sectors than earlier calculations suggested.
The revision was primarily driven by increased investment, consumer expenditure, and government spending. Consumer purchases and business investments played a significant role in boosting the second-quarter growth, although higher imports slightly dampened the overall GDP figure, as imports are subtracted in the calculation. The current-dollar GDP grew at an annualized rate of 8.5% during this period. The updated data also altered estimates for private inventories, fixed investments, and various household spending categories, offering a broader view of overall economic activity.
Private fixed investment saw upward revisions thanks to stronger estimates for nonresidential structures and residential projects. The new construction data included commercial developments and healthcare facilities, with data centers among the nonresidential structure categories affecting the figures. Consumer spending estimates also increased for both goods and services. Notable contributions to the revision came from recreational goods, vehicles, and recreation services, which helped lift the final estimate above the previous second-quarter figure.
Indicators of domestic demand strengthen
Real final sales to private domestic buyers rose at a 4.6% annual rate during the second quarter. This metric combines consumer expenditure with private fixed investment while excluding more volatile GDP components. The earlier estimate indicated a growth of 4.2%. During the same period, real gross domestic income increased by 2.6%. The average of real GDP and real gross domestic income rose to 2.4%, providing additional insights into production and income generated throughout the U.S. economy.
Corporate profits from current production grew by $384 billion in the second quarter. Private service-providing industries increased their real value added by 2.5%, while private goods-producing industries experienced a 2.3% increase. The government sector saw less than a 0.1% rise. Overall, real gross output expanded by 5.0%. Service sectors grew by 6.0%, goods-producing industries by 3.0%, and government output by 2.6% during this period.
Price indices stay high
The personal consumption expenditures price index rose at a 5.0% annual rate in the second quarter, slightly below the earlier estimate of 5.3%. Excluding food and energy, core PCE increased at a 3.3% annual rate, compared to the previous estimate of 3.6%. The gross domestic purchases price index increased by 5.6%. The U.S. Bureau of Economic Analysis reports these quarterly adjustments at seasonally adjusted annual rates, which differ from year-over-year inflation calculations.
Economic expansion showed variation across states during the second quarter. Real GDP grew 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 rose by $314.3 billion, reflecting a 4.7% annual rate. Personal income increased in 49 states and the District of Columbia. The latest regional and national data also incorporate the agency’s 2026 annual updates to its economic accounts.