WASHINGTON, DC / RankWire.AI / – The second quarter of 2026 saw the U.S. economy expand at an annualized rate of 2.2%. The U.S. Bureau of Economic Analysis revised its previous estimate from 1.5%. This adjustment, covering economic activity from April through June, also increased first-quarter growth to 2.5% from the initially reported 2.1%. The updated figures reveal a more robust domestic economy across key components than earlier estimates suggested.
The revision was largely driven by stronger investment, increased consumer spending, and higher government expenditure. Consumer purchases and business investments contributed significantly to the upward revision, while increased imports—a subtraction in GDP calculations—temper the overall growth. The current-dollar GDP grew at an 8.5% annualized rate during the quarter. Additionally, new data altered estimates for private inventories, fixed investments, and various household spending categories, painting a broader picture of economic activity.
Private fixed investment received upward revisions, particularly in nonresidential structures and residential projects. Construction data now include commercial and healthcare facilities, with data centers among the nonresidential categories. Consumer spending estimates also increased for both goods and services, with recreational goods, vehicles, and recreation services playing a role in the revision. These changes pushed the final GDP estimate above the previous second-quarter figures.
Domestic demand indicators show growth
Real final sales to private domestic buyers rose at a 4.6% annual rate in the second quarter, up from the earlier estimate of 4.2%. This measure combines consumer expenditure and private fixed investment, excluding more volatile GDP components. Real gross domestic income also increased by 2.6% during this period. The average of real GDP and real gross domestic income advanced 2.4%, offering deeper insights into production and income across the economy.
Corporate profits from ongoing production climbed by $384 billion. Private service industries added 2.5% in real value, while private goods sectors grew by 2.3%. The government sector saw less than a 0.1% increase. Overall, real gross output expanded by 5.0%. Industries producing services grew by 6.0%, goods-producing sectors increased by 3.0%, and government output moved up 2.6% during the quarter.
Inflation measures remain high but slightly cooler
The personal consumption expenditures (PCE) price index rose at a 5.0% annual rate in the second quarter, slightly below the previous estimate of 5.3%. The core PCE index, which excludes food and energy, increased by 3.3% annually, down from an earlier 3.6% estimate. The gross domestic purchases price index advanced 5.6%. These quarterly changes are seasonally adjusted annual rates reported by the U.S. Bureau of Economic Analysis and differ from year-over-year inflation figures.
During the second quarter, economic growth was uneven across states. Out of 50 states and the District of Columbia, 44 experienced increases in real GDP. New York led with a 4.0% rise, while West Virginia saw a 2.3% decline. Personal income in current dollars grew by $314.3 billion, a 4.7% annual rate. Personal income increased in 49 states plus the District of Columbia. These latest national and regional figures also include the agency’s 2026 updates to its economic accounts.