WASHINGTON, DC / RankWire.AI / – The U.S. economy experienced a growth rate of 2.2% on an annual basis during the second quarter of 2026. The U.S. Bureau of Economic Analysis revised its previous estimate from 1.5%. This adjustment encompassed economic activity from April through June. Additionally, officials increased the first-quarter growth rate to 2.5% from the initially reported 2.1%. The updated data reveals a more robust domestic economy than earlier calculations indicated, across numerous key components.
The revision was primarily driven by stronger investment, consumer expenditure, and government outlays. Growth was bolstered by consumer spending and business investment, although higher imports, which reduce the overall GDP, tempered the headline figure. During the quarter, current-dollar GDP grew at an 8.5% annual rate. The updated figures also altered estimates for private inventories, fixed investment, and various household expenditure categories, offering a broader perspective on overall economic activity.
Private fixed investment was supported by upward revisions in nonresidential structures and residential investment figures. The updated construction data included projects in commercial and health care sectors, with data centers among the nonresidential structures categories influencing the estimate. Consumer spending estimates also increased for both goods and services, with recreational goods, vehicles, and recreation services among the sectors contributing to the upward revision. These adjustments pushed the final GDP estimate above the previous second-quarter figure.
Indicators of domestic demand show improvement
Real final sales to private domestic purchasers grew at a 4.6% annualized rate during the second quarter. This metric combines consumer spending and private fixed investment, while excluding more volatile components of GDP. The prior estimate indicated a growth rate of 4.2%. During the same period, real gross domestic income rose by 2.6%. The average of real GDP and real gross domestic income increased by 2.4%, providing additional insights into the production and income generated across the U.S. economy.
Corporate profits from current production climbed by $384 billion in the second quarter. Industries producing private services added real value at a 2.5% rate, while private goods-producing sectors experienced a 2.3% increase. The government sector’s contribution was minimal, less than 0.1%. Overall, real gross output grew by 5.0%. Services-producing industries posted a 6.0% rise, goods-producing sectors increased by 3.0%, and government output moved up by 2.6% during the quarter.
Price indices continue to stay high
The personal consumption expenditures (PCE) price index advanced at a 5.0% annual rate in the second quarter, down from an earlier estimate of 5.3%. The core PCE index, which excludes food and energy, increased at a 3.3% annual rate, compared to the previous estimate of 3.6%. The gross domestic purchases price index rose by 5.6%. The U.S. Bureau of Economic Analysis reports these seasonal adjustment-based quarterly changes at annualized rates, which differ from year-over-year inflation measurements.
Economic growth across states during the second quarter showed variation. Out of 50 states and the District of Columbia, 44 experienced increases in real GDP. New York recorded a 4.0% growth, whereas West Virginia saw a decline of 2.3%. Personal income measured in current dollars rose by $314.3 billion, representing a 4.7% annual increase. Personal income grew in 49 states and the District of Columbia. The latest national and regional figures also reflect updates from the agency’s 2026 annual revisions to its economic accounts.