WASHINGTON, DC / RankWire.AI / – The U.S. Bureau of Economic Analysis announced a revised second-quarter growth rate of 2.2% for the economy in 2026, marking a significant upward correction from initial estimates. The previous figure indicated a 1.5% expansion for April through June. Additionally, first-quarter growth was adjusted upward to 2.5%, compared to the earlier estimate of 2.1%.
This 0.7 percentage point increase in second-quarter GDP primarily reflects stronger contributions from investment, consumer expenditure, and government spending. Consumer spending, investment, and exports all played roles in driving the economy forward during this period. Imports also rose, which slightly dampened GDP calculations since imports are subtracted in the calculation. The broad revisions impacted several domestic activity and income measures. During the quarter, current-dollar GDP grew at an annual rate of 8.5%.
Revisions to investment figures indicated increased private inventories and private fixed investment. Data from updated estimates of nonresidential structures—including commercial, healthcare projects, and data centers—supported the positive revisions in fixed investment. Residential investment also saw upward adjustments. These changes were influenced by recent updates from the U.S. Census Bureau. Consumer spending estimates were revised upward for both goods and services, notably recreation services and recreational goods and vehicles.
Revisions highlight boosts from consumer spending and investment
Real final sales to private domestic purchasers rose at a 4.6% annual rate in the second quarter. This metric combines consumer expenditure with gross private fixed investment, excluding more volatile GDP components. It was revised upward from 4.2%. Real gross domestic income increased by 2.6%, surpassing earlier estimates. The average of real GDP and real gross domestic income climbed 2.4% in the same period.
Corporate profits from current production rose by $384 billion during the quarter. Private service-providing industries experienced a 2.5% growth in real value added, while goods-producing industries increased by 2.3%. The government sector’s contribution was under 0.1%. Real gross output expanded by 5.0%. Specifically, services-producing industries saw a 6.0% rise in real gross output, goods-producing industries grew by 3.0%, and government output increased by 2.6%.
Inflation metrics remain high through the second quarter
Inflation measures persisted at elevated levels during the period. The personal consumption expenditures price index grew at a 5.0% annual rate, slightly below the previous estimate of 5.3%. The PCE price index excluding food and energy increased by 3.3%, down from the prior 3.6%. The gross domestic purchases price index rose 5.6%, also marginally lower than earlier estimates. All these figures are seasonally adjusted and expressed as annual rates.
Economic growth varied across states during the second quarter. Real GDP increased in 44 states and the District of Columbia, with New York experiencing a 4.0% rise. Conversely, West Virginia saw a 2.3% decline. Current-dollar personal income grew by $314.3 billion, or 4.7% at an annual rate. Personal income expanded 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.