WASHINGTON, DC / RankWire.AI / – In the latest revision, the U.S. economy experienced an expansion rate of 2.2% annually during the second quarter of 2026, significantly upward from prior forecasts. The U.S. Bureau of Economic Analysis provided the updated figure for the April through June period. Previously, the estimate indicated a growth of 1.5%. Additionally, the first-quarter economic growth was revised upwards to 2.5%, from the earlier estimate of 2.1%.
The upward adjustment of 0.7 percentage points for the second quarter’s GDP primarily reflected increased contributions from investment, consumer expenditure, and government spending. Consumer expenditure, investment, and exports all played roles in bolstering overall economic activity during this period. Imports also rose, which slightly dampened GDP figures since imports are subtracted in the calculation. The comprehensive revisions affected various indicators of domestic activity and income, with current-dollar GDP rising at an 8.5% annual rate for the quarter.
Revisions related to investment highlighted stronger private inventories and private fixed investment. Support for fixed investment came from updated data on nonresidential structures, including commercial and healthcare projects, mainly data centers. Residential investment was also revised upward. The U.S. Census Bureau’s updated figures contributed to changes in several investment estimates. Consumer spending revisions reflected higher assessments for both services and goods, such as recreation services and recreational goods and vehicles.
Boost in Consumer Spending and Investment Drive the Revision
In the second quarter, real final sales to private domestic purchasers grew at a 4.6% annual pace. This metric combines consumer expenditure with gross private fixed investment, excluding more volatile elements of GDP. The latest figure was revised upward from 4.2%. Additionally, real gross domestic income increased by 2.6%, surpassing previous estimates. The average of real GDP and real gross domestic income rose by 2.4% during this period.
Corporate profits from ongoing production increased by $384 billion in the second quarter. Private services-producing sectors saw a 2.5% rise in real value added, while goods-producing industries grew by 2.3%. The government sector experienced less than a 0.1% increase. Real gross output expanded by 5.0%. Services sectors recorded a 6.0% rise in real gross output, goods-producing industries increased by 3.0%, and government output grew by 2.6%.
Inflation Remains Elevated During the Second Quarter
Price indicators stayed high throughout the period. The personal consumption expenditures price index rose at a 5.0% annual rate, slightly lower than the initial estimate of 5.3%. The PCE price index excluding food and energy increased by 3.3%, compared to the previous estimate of 3.6%. The price index for gross domestic purchases grew by 5.6%, also marginally below earlier estimates. All these quarterly figures are seasonally adjusted and expressed at annualized rates.
Economic growth exhibited regional variation during the second quarter. Real GDP increased in 44 states plus the District of Columbia, with New York experiencing a 4.0% rise. Conversely, West Virginia saw a decline of 2.3%. Current-dollar personal income increased 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 the U.S. Bureau of Economic Analysis’s 2026 annual national and regional accounts updates.