WASHINGTON, DC / RankWire.AI / – In the second quarter of 2026, the United States experienced an economic growth rate of 2.2% on an annual basis. The U.S. Bureau of Economic Analysis revised its previous estimate from 1.5% to reflect a higher pace. This update covered economic performance from April through June. Additionally, officials raised the first-quarter growth figure from 2.1% to 2.5%. The revised data indicates a more vigorous domestic economy than earlier figures suggested, across many key sectors.
The revision was largely driven by increased investment, along with stronger consumer and government expenditures. Growth was supported by consumer purchases and business investments, although higher imports somewhat lowered the overall GDP figure. Imports are subtracted when economists calculate gross domestic product. During the quarter, current-dollar GDP grew at an annual rate of 8.5%. The updated figures also revised estimates related to private inventories, fixed investments, and various household expenditure categories, painting a broader picture of economic activity.
Support for private fixed investment came from upward adjustments in estimates for nonresidential structures and residential investments. These revised construction data included commercial and healthcare projects, with data centers among the nonresidential structure categories affected. Consumer spending estimates also increased for both goods and services, with recreational goods, vehicles, and recreational services among the areas contributing to the upward revision. These revisions pushed the final estimate above the previous second-quarter figure.
Indicators of domestic demand gain strength
Real final sales to private domestic buyers grew at a 4.6% annual rate in the second quarter, combining consumer spending and private fixed investment while excluding some more volatile GDP components. The earlier estimate showed a growth rate of 4.2%. During the same period, real gross domestic income rose by 2.6%. The average of real GDP and real gross domestic income increased to 2.4%. These measures offered additional insights into production and income levels across the U.S. economy.
Corporate profits from ongoing production increased by $384 billion in the second quarter. The private services sector grew its real value added by 2.5%, while private goods-producing industries expanded by 2.3%. The government sector experienced a minimal rise of less than 0.1%. Overall, real gross output advanced by 5.0%. Services-producing sectors saw a 6.0% increase, goods-producing industries grew by 3.0%, and government output increased by 2.6% during this period.
Inflation pressures remain high
The personal consumption expenditures price index rose at a 5.0% annual pace in the second quarter, slightly lower than the previous estimate of 5.3%. The core PCE, which excludes food and energy, increased by 3.3% annually compared to the earlier estimate of 3.6%. The price index for gross domestic purchases grew by 5.6%. The U.S. Bureau of Economic Analysis reports these quarterly changes based on seasonally adjusted annual rates, which differ from year-over-year inflation measurements.
Economic growth displayed variation among states during the second quarter. Real GDP increased in 44 states and the District of Columbia, with New York experiencing a 4.0% rise and West Virginia declining by 2.3%. Current-dollar personal income grew by $314.3 billion, representing a 4.7% annual rate. Personal income rose in 49 states and the District of Columbia. The latest national and regional figures also incorporated the agency’s 2026 annual updates to its economic accounts.