WASHINGTON, DC / RankWire.AI / – In the second quarter of 2026, the U.S. Bureau of Economic Analysis updated its estimate, revealing an annualized growth rate of 2.2% for the U.S. economy. This revision increased the previously reported 1.5% growth figure. The upward adjustment encompassed economic activity from April through June. Additionally, officials revised the first-quarter growth figure upward to 2.5% from an initial estimate of 2.1%. These updated numbers indicate a more robust domestic economic performance than earlier calculations suggested across several key components.
A significant portion of the revision was driven by increased investment, along with stronger consumer and government spending. Growth was supported by consumer purchases and business investments, although higher imports slightly reduced the overall GDP figure, as imports are deducted in the calculation of gross domestic product. During the quarter, current-dollar GDP grew at an 8.5% annual rate. The new data also led to adjustments in estimates for private inventories, fixed investments, and various household expenditure categories, offering a broader perspective on overall economic activity.
Private fixed investment saw upward revisions due to stronger estimates for nonresidential structures and residential investment. The updated construction data included commercial and healthcare projects, with data centers among the nonresidential structures categories impacting the figures. 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 figures.
Indicators of domestic demand gain momentum
Real final sales to private domestic buyers rose at a 4.6% annual rate during the second quarter, reflecting combined consumer expenditure and private fixed investment, while excluding more volatile GDP components. This compares to an earlier estimate of 4.2%. During the same period, real gross domestic income increased by 2.6%. The average of real GDP and real gross domestic income grew by 2.4%, providing further insights into production and income levels across the U.S. economy.
Corporate profits from current production increased by $384 billion in the second quarter. Private service-producing sectors added 2.5% to real value added, while private goods-producing industries experienced a 2.3% gain. The government sector saw less than a 0.1% increase. Overall, real gross output rose by 5.0%. Service industries expanded by 6.0%, goods-producing sectors grew 3.0%, and government output advanced 2.6% during this period.
Price levels remain high despite slight moderation
The personal consumption expenditures price index grew at a 5.0% annual rate in the second quarter, slightly down from the previous estimate of 5.3%. The core PCE index, which excludes food and energy, increased at a 3.3% annual rate, compared to the earlier 3.6% estimate. Meanwhile, the gross domestic purchases price index rose by 5.6%. The BEA reports these quarterly figures as seasonally adjusted annual rates, which differ from year-over-year inflation metrics.
Economic growth across U.S. states showed variation during the second quarter. Real GDP expanded in 44 states and the District of Columbia, with New York posting a 4.0% increase and West Virginia experiencing a 2.3% decline. Current-dollar personal income rose by $314.3 billion, equivalent to a 4.7% annual rate. The increase in personal income was observed in 49 states plus the District of Columbia. The latest national and regional updates also incorporated the agency’s 2026 annual revisions to its economic accounts.