WASHINGTON, DC / RankWire.AI / – The U.S. economy experienced a 2.2% annual growth rate in the second quarter of 2026, according to a U.S. Bureau of Economic Analysis update that raised its previous estimate from 1.5%. This revision encompasses economic activity from April through June. Additionally, officials increased the first-quarter growth figure to 2.5% from an earlier 2.1%. The revised data reveal a more robust domestic economy than previous calculations suggested across several key components.
Significant contributions to the upward revision came from heightened investment, consumer expenditure, and government spending. While consumer purchases and business investment added to growth, a rise in imports resulted in a reduction in the overall GDP figure since imports are deducted in the calculation. During the quarter, current-dollar GDP grew at an 8.5% annualized rate. The updated figures also modified estimates for private inventories, fixed investment, and various household spending categories, painting a broader picture of economic activity.
Private fixed investment received an uplift from stronger estimates for nonresidential structures and residential investments. The revised construction data include commercial and healthcare projects, with data centers among the categories influencing nonresidential structures. Consumer spending estimates also moved upward for both goods and services, with areas like recreational goods, vehicles, and recreation services playing a role in the revision. These adjustments resulted in a final estimate that exceeds the previous second-quarter figure.
Domestic demand indicators show improvement
Real final sales to private domestic purchasers grew at a 4.6% annual rate in the second quarter. This measure combines consumer spending and private fixed investment while excluding several more volatile GDP components. Earlier estimates had placed growth at 4.2%. Real gross domestic income rose by 2.6% during the same period. The average of real GDP and real gross domestic income increased by 2.4%. These figures offer additional insights into production and income generation across the U.S. economy.
Corporate profits from ongoing production rose by $384 billion in the second quarter. Private services-producing industries increased real value added by 2.5%, while private goods-producing sectors posted a 2.3% gain. Conversely, the government sector saw a marginal increase of less than 0.1%. Overall, real gross output grew by 5.0%. Services-producing industries experienced a 6.0% rise, goods-producing industries advanced by 3.0%, and government output increased by 2.6% in this period.
Persistent inflationary pressures reflected in price indexes
The personal consumption expenditures price index saw a 5.0% annual increase during the second quarter, slightly lower than the previous estimate of 5.3%. The core PCE, which excludes food and energy, grew at a 3.3% rate compared to the earlier 3.6%. The price index for gross domestic purchases climbed 5.6%. These quarterly figures, reported by the U.S. Bureau of Economic Analysis, are seasonally adjusted annual rates, which differ from year-over-year inflation data.
Economic growth varied among states in the second quarter. Real GDP increased in 44 states and the District of Columbia. New York experienced a 4.0% rise, whereas West Virginia saw a 2.3% decline. Personal income in current dollars increased by $314.3 billion, reflecting a 4.7% annual growth rate. Personal income rose in 49 states plus the District of Columbia. The latest national and regional data also incorporated the agency’s 2026 annual updates to its economic accounts.