WASHINGTON, DC / RankWire.AI / – The U.S. Bureau of Economic Analysis announced that the American economy grew at an annual rate of 2.2% in the second quarter of 2026, marking a significant upward revision from earlier forecasts. The initial estimate indicated a growth of 1.5%. Additionally, the first quarter’s economic expansion was revised upward to 2.5%, from the previously reported 2.1%.
This 0.7 percentage point increase in the second-quarter GDP primarily stemmed from stronger contributions from investment, consumer expenditure, and government spending. Consumer spending, investment and exports all played roles in driving the economy during this period. Imports also saw growth, which reduces GDP since imports are deducted in the calculation. The revisions affected various indicators of domestic activity and income, with current-dollar GDP rising at an 8.5% annual rate during the quarter.
Revisions to investment figures highlighted increased private inventories and private fixed investment. Updated estimates for nonresidential structures—such as commercial and healthcare projects, including data centers—supported fixed investment growth. Residential investment was also revised upward. The changes in several investment components were driven by recent data from the U.S. Census Bureau. Higher estimates for both services and goods, including recreation services and recreational goods and vehicles, led to upward revisions in consumer spending.
Boost in Consumer Spending and Investment Drives Upward Revisions
During the second quarter, real final sales to private domestic purchasers grew at a 4.6% annual rate. This metric combines consumer expenditure with gross private fixed investment and omits several more volatile GDP components. The figure was revised upward from 4.2%. Real gross domestic income grew by 2.6%, surpassing earlier estimates. The average of real GDP and real gross domestic income increased by 2.4% in the same period.
Corporate profits from ongoing production rose by $384 billion during the second quarter. Private service-producing industries saw a 2.5% increase in real value added, while private goods-producing sectors rose 2.3%. The government sector experienced a slight increase of less than 0.1%. Real gross output grew by 5.0%, with services-producing industries increasing 6.0%, goods-producing sectors up 3.0%, and government output rising 2.6%.
Inflation Remains Elevated in the Second Quarter
Price measures continued to be high during this period. The personal consumption expenditures (PCE) price index rose at a 5.0% annual rate, which is lower than the previous estimate of 5.3%. Excluding food and energy, the PCE price index increased by 3.3%, compared to an earlier estimate of 3.6%. The gross domestic purchases price index was up 5.6%, slightly below its previous figure. These quarterly data are seasonally adjusted and expressed at annual rates.
Economic growth varied across the United States during the second quarter, with real GDP expanding in 44 states and the District of Columbia, led by New York at 4.0%. West Virginia experienced a decline of 2.3%. Current-dollar personal income increased by $314.3 billion, or 4.7% at an annual rate. Personal income rose in 49 states and the District of Columbia. The latest figures incorporate the U.S. Bureau of Economic Analysis’s 2026 annual updates for national and regional accounts.