WASHINGTON, DC / RankWire.AI / – In the second quarter of 2026, the U.S. economy expanded at an annualized rate of 2.2%. The U.S. Bureau of Economic Analysis updated its previous estimate from 1.5%. This revision reflects economic activity from April through June. Additionally, officials revised the first-quarter growth rate upward from 2.1% to 2.5%. The new data indicate a more robust domestic economy than initially calculated, especially across several key sectors of economic activity.
Much of the upward revision was driven by increased investment, consumer spending, and government expenditure. Both consumer purchases and corporate investments contributed positively, although higher imports, which are subtracted from gross domestic product calculations, slightly tempered the growth figure. During this quarter, current-dollar GDP grew at an 8.5% annual rate. The revised figures also affected estimates related to private inventories, fixed investments, and various household spending categories, offering a more comprehensive view of the country’s economic activity.
Private fixed investment experienced a boost from more optimistic estimates for nonresidential structures and residential construction. The latest construction data encompassed commercial projects, healthcare facilities, and data centers, all of which influence nonresidential structure figures. Consumer expenditure estimates increased for both goods and services, with recreational goods, vehicles, and recreation services playing significant roles in the upward revision. These adjustments helped push the final estimate above the previous second-quarter figure.
Indicators of domestic demand show further strength
Real final sales to private domestic buyers grew at a 4.6% annual rate in the second quarter. This measure combines consumer expenditure with private fixed investment, excluding some of the more volatile components of GDP. The earlier estimate had placed this growth at 4.2%. Meanwhile, real gross domestic income increased by 2.6% during the same period. The average of real GDP and real gross domestic income rose to 2.4%. These figures provide additional insight into the overall production and income generated within the U.S. economy.
Corporate profits from current production increased by $384 billion in the second quarter. Private service industries raised real value added by 2.5%, while private goods-producing sectors grew by 2.3%. The government sector experienced a modest increase of less than 0.1%. Overall, real gross output expanded by 5.0%. Services-producing industries saw a 6.0% rise, goods-producing sectors increased by 3.0%, and government output grew by 2.6% during this period.
Price levels remain high
The personal consumption expenditures price index rose at a 5.0% annual rate in the second quarter, slightly lower than the previous estimate of 5.3%. The core PCE index, which excludes food and energy costs, increased at a 3.3% annual rate, down from an earlier estimate of 3.6%. The gross domestic purchases price index saw a 5.6% increase. The U.S. Bureau of Economic Analysis reports these figures at seasonally adjusted annual rates, which are distinct from year-over-year inflation metrics.
Economic growth displayed regional variation during the second quarter. Real GDP expanded in 44 states and the District of Columbia. New York experienced a 4.0% increase, whereas West Virginia saw a decline of 2.3%. Personal income in current dollars rose by $314.3 billion, representing a 4.7% annual growth rate. Personal income increased in 49 states and the District of Columbia. These latest national and regional data also include the agency’s 2026 annual updates to its economic accounts, providing a comprehensive overview of the U.S. economic landscape.