WASHINGTON, DC / RankWire.AI / – The second quarter of 2026 saw the U.S. economy expand at an annual rate of 2.2%. The U.S. Bureau of Economic Analysis revised its previous estimate from 1.5%. This update reflects economic activity from April through June. Additionally, officials increased the first-quarter growth figure from 2.1% to 2.5%. The new data indicates a more robust domestic economy than earlier calculations suggested, across several key sectors.
Much of the upward revision was driven by increased investment, consumer expenditure, and government outlays. Growth was supported by consumer and business spending, though higher imports, which are subtracted in GDP calculations, tempered the overall figure. During the quarter, current-dollar GDP grew at an 8.5% annual pace. The updated statistics also altered estimates for private inventories, fixed investments, and various household expenditure categories, giving a more comprehensive view of economic activity.
Support for private fixed investment was bolstered by higher estimates for nonresidential structures and residential investments. These revised construction figures included projects in commercial and healthcare sectors, with data centers among the nonresidential categories. Consumer spending estimates were also adjusted upward for both goods and services, including recreational goods, vehicles, and recreation services—contributing to the upward revision. These updates pushed the final GDP estimate above the previous second-quarter figure.
Indicators of domestic demand show strength
Real final sales to private domestic buyers increased at a 4.6% annual rate in the second quarter. This metric combines consumer expenditure with private fixed investment but excludes some more volatile GDP components. The earlier estimate had placed growth at 4.2%. Real gross domestic income rose by 2.6% during the same period. The average of real GDP and real gross domestic income increased by 2.4%. These figures offer deeper insights into the production and income generated across the U.S. economy.
Corporate profits from ongoing production rose by $384 billion in the second quarter. Industries providing private services saw a 2.5% increase in real value added, while private goods-producing sectors grew by 2.3%. The government sector saw a negligible increase of less than 0.1%. Overall, real gross output expanded by 5.0%. Within this, services industries grew by 6.0%, goods-producing industries by 3.0%, and government output by 2.6% during the quarter.
Price indexes stay elevated but show slight moderation
In the second quarter, the personal consumption expenditures price index rose at a 5.0% annual rate, slightly below the earlier estimate of 5.3%. The core PCE index, which excludes food and energy, increased at a 3.3% rate compared to the previous 3.6%. The gross domestic purchases price index went up by 5.6%. These quarterly figures from the U.S. Bureau of Economic Analysis are seasonally adjusted annual rates, differing from year-over-year inflation measures.
Regional economic performance varied in the second quarter. Real GDP expanded in 44 states and the District of Columbia, with New York experiencing a 4.0% increase, while West Virginia declined by 2.3%. Personal income in current dollars rose by $314.3 billion, an annual rate of 4.7%. Personal income increased in 49 states and the District of Columbia. The latest national and regional data also incorporate the agency’s 2026 annual updates to its economic accounts.