WASHINGTON, DC / RankWire.AI / – The second quarter of 2026 saw the US economy expand at an annual rate of 2.2%. The U.S. Bureau of Economic Analysis updated its earlier estimate from 1.5%. This revision now covers economic activity from April through June. Additionally, officials increased the first quarter’s growth rate from an initial 2.1% to 2.5%. The revised figures reveal a more robust domestic economy than previous calculations suggested, across several key components.
Much of the upward revision stems from stronger investment, consumer spending, and government expenditure. Consumer purchases and business investments played significant roles in driving growth. Meanwhile, higher imports lowered the overall GDP figure, as imports are deducted in the calculation of gross domestic product. During this quarter, current-dollar GDP grew at an 8.5% annual rate. The updated data also adjusted estimates for private inventories, fixed investments, and various household spending categories, offering a broader view of economic activity.
Support for private fixed investment was boosted by revised figures for nonresidential structures and residential investments. The updated construction data included projects in the commercial and healthcare sectors, with data centers influencing nonresidential structure figures. Consumer spending estimates also increased for both goods and services, notably in recreational goods, vehicles, and recreation services. These adjustments contributed to a final GDP estimate higher than the previous second-quarter figure.
Domestic demand indicators show improvement
Real final sales to private domestic buyers rose at a 4.6% annual rate in the second quarter. This measure combines consumer spending with private fixed investments, excluding some more volatile GDP components. Previously, growth was estimated at 4.2%. Real gross domestic income rose by 2.6% during the same period. When averaged, real GDP and real gross domestic income increased by 2.4%. These metrics provide detailed insights into the production and income generated across the US economy.
Corporate profits from current production grew by $384 billion in the second quarter. Private industries focused on services increased their real value added by 2.5%, while goods-producing private sectors recorded a 2.3% rise. The government sector experienced a minimal increase of less than 0.1%. Overall, real gross output expanded by 5.0%. Services-producing sectors grew by 6.0%, goods-producing industries by 3.0%, and government output advanced by 2.6% during this period.
Inflation measures remain at elevated levels
The personal consumption expenditures price index increased at a 5.0% annual rate in the second quarter, slightly lower than the previous estimate of 5.3%. The core PCE, which excludes food and energy, rose at a 3.3% annual pace compared to the earlier estimate of 3.6%. The gross domestic purchases price index increased by 5.6%. The U.S. Bureau of Economic Analysis reports these quarterly changes at seasonally adjusted annual rates, which differ from the year-over-year inflation measures.
Economic growth varied across different states during the second quarter. Real GDP increased in 44 states and the District of Columbia. New York experienced a 4.0% rise, while West Virginia saw a decline of 2.3%. Current-dollar personal income rose by $314.3 billion, translating to a 4.7% annual increase. Personal income levels increased in 49 states and the District of Columbia. The latest national and regional data also incorporated the agency’s 2026 annual updates to its economic accounts, reflecting a comprehensive revision.