WASHINGTON, DC / RankWire.AI / – In the second quarter of 2026, the U.S. economy saw an upward revision, expanding at an annual rate of 2.2%, significantly higher than earlier projections. The U.S. Bureau of Economic Analysis provided the updated figure for April through June, revising the prior estimate of 1.5%. Additionally, first-quarter growth was adjusted upward to 2.5% from the previously reported 2.1%.
The 0.7 percentage point increase in second-quarter GDP was primarily driven by stronger investment, consumer expenditure, and government spending. Consumer spending, investment, and exports all contributed to the economic expansion during this period. Imports also grew, which reduced GDP because imports are subtracted in the calculation. The overall revisions affected several indicators of domestic activity and income, with current-dollar GDP rising at an 8.5% annual rate for the quarter.
Revisions to investment data included increased private inventories and private fixed investments, supported by updated figures for nonresidential structures, such as commercial and healthcare projects, mainly data centers. Residential investment was also revised upward, influenced by new data from the U.S. Census Bureau that affected various investment estimates. Consumer spending was revised to reflect higher figures for both services and goods, including recreation services and recreational goods and vehicles.
Enhancements in consumer spending and investment drive revision
In the second quarter, real final sales to private domestic purchasers increased at an annual rate of 4.6%, combining consumer expenditures with gross private fixed investment and excluding more volatile GDP components. This figure was revised upward from 4.2%. Real gross domestic income grew by 2.6%, also surpassing earlier estimates. The average of real GDP and real gross domestic income rose by 2.4% during the period.
Corporate profits from current production increased by $384 billion in the second quarter. Private services-producing industries added 2.5% in real value, while private goods-producing sectors grew by 2.3%. The government sector experienced a minimal increase of less than 0.1%. Real gross output rose 5.0%, with services industries up 6.0%, goods industries up 3.0%, and government output increasing by 2.6%.
Inflation remains high despite second-quarter slowdown
Inflation measures persisted at elevated levels during the quarter. The personal consumption expenditures price index increased at an annual rate of 5.0%, a decrease from the previous estimate of 5.3%. The PCE price index excluding food and energy rose 3.3%, down from 3.6%. The gross domestic purchases price index increased by 5.6%, slightly below earlier estimates. These figures are seasonally adjusted and annualized.
Economic growth showed regional variation in the second quarter, with 44 states and the District of Columbia experiencing growth. New York saw a 4.0% increase, whereas West Virginia declined by 2.3%. Personal income in current dollars rose by $314.3 billion, or 4.7% annually. Most states and the District of Columbia experienced income growth, as the U.S. Bureau of Economic Analysis incorporated its 2026 annual national and regional accounts updates into the latest data.