WASHINGTON, DC / RankWire.AI / – The United States experienced a 2.2% annualized growth rate in its economy during the second quarter of 2026, marking a significant upward revision from earlier projections. The U.S. Bureau of Economic Analysis released the updated figure for April through June. Previously, growth was estimated at 1.5%. Additionally, first-quarter growth was revised upward to 2.5% from the earlier estimate of 2.1%.
The upward adjustment of 0.7 percentage points for second-quarter GDP was primarily driven by stronger investments, consumer expenditures, and government outlays. Consumer spending, investment, and exports all contributed to the overall economic expansion in the period. Imports also rose, which lessened GDP growth since imports are subtracted in the calculation. The broader revisions affected several measures of economic activity and income, with current-dollar GDP climbing at an 8.5% annual rate during the quarter.
Revisions to investment figures included increases in private inventories and private fixed investment. The support for fixed investment came from updated estimates for nonresidential structures—such as commercial buildings, healthcare facilities, and data centers. Residential investment was also adjusted upward. Updated data from the U.S. Census Bureau contributed to changes in multiple investment estimates. Consumer spending revisions reflected higher projections for both services and goods, including recreation services and recreational goods and vehicles.
Consumer and investment upgrades drive positive 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 some more volatile components of GDP. The figure was revised upward from 4.2%. Real gross domestic income increased by 2.6%, also above the prior estimate. The average of real GDP and real gross domestic income increased by 2.4% during this period.
Corporate profits from ongoing production rose by $384 billion in the second quarter. Private services-producing industries saw a 2.5% increase in real value added, while private goods-producing industries grew by 2.3%. The government sector experienced less than a 0.1% increase. Real gross output rose by 5.0%, with services producing a 6.0% increase, goods 3.0%, and government output 2.6%.
Inflation remains elevated in the second quarter
Price measures stayed high during this quarter. The personal consumption expenditures price index rose 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 to the previous estimate of 3.6%. The gross domestic purchases price index increased by 5.6%, slightly below its earlier projection. All figures are seasonally adjusted and expressed at annual rates.
Economic growth also varied regionally during the second quarter. Real GDP expanded in 44 states and the District of Columbia, with New York seeing a 4.0% rise. Conversely, West Virginia experienced a 2.3% decline. Personal income in current dollars increased by $314.3 billion, or 4.7% at an annual rate. Income grew 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 data.