WASHINGTON, DC / RankWire.AI / – The overall economic performance across the United States saw a significant upward revision in the second quarter of 2026, with the annual growth rate now reported at 2.2%. This marks a substantial improvement over earlier figures. The U.S. Bureau of Economic Analysis provided the updated data for the April through June period, revising the prior estimate of 1.5%. Additionally, first-quarter growth was also adjusted upward to 2.5%, up from the previously reported 2.1%.
The 0.7 percentage point increase in the second-quarter GDP mainly stemmed from stronger contributions in investment, consumer expenditure, and government spending. Consumer expenditure, investment, and exports played key roles in bolstering the economy during this period. Imports also rose, which had a negative impact on the GDP calculation since imports are subtracted. The broader revisions affected various measures of domestic activity and income, with current-dollar GDP rising at an 8.5% annual rate for the quarter.
Revisions in investment figures indicated increased private inventories and fixed investments. The updates for nonresidential structures, such as commercial buildings, health care facilities, and mainly data centers, contributed to this growth. Residential investment was also revised upward. Data from the U.S. Census Bureau supported adjustments to several investment estimates. Consumer spending revisions reflected higher evaluations for both services and goods, including recreation services and recreational goods and vehicles.
Boost from consumer expenditure and investment revisions
Real final sales to private domestic buyers grew at a 4.6% annual rate during the second quarter. This metric combines consumer expenditure with gross private fixed investment, excluding some of the more volatile components of GDP. The latest figure was revised upward from 4.2%. Meanwhile, real gross domestic income increased by 2.6%, exceeding previous estimates. The average of real GDP and real gross domestic income rose 2.4% during the same period.
Corporate profits from current production rose by $384 billion in the second quarter. Private services-producing sectors experienced a 2.5% rise in real value added, while private goods-producing industries increased by 2.3%. The government sector saw minimal growth, less than 0.1%. Real gross output expanded by 5.0%, with services industries up 6.0%, goods industries increasing 3.0%, and government output rising 2.6%.
Inflation indicators remain high through the second quarter
Inflation measures persisted at elevated levels during this period. The personal consumption expenditures price index rose at a 5.0% annual rate, a slight decrease from the earlier estimate of 5.3%. The PCE price index excluding food and energy increased by 3.3%, down from 3.6%. The gross domestic purchase price index climbed 5.6%, also marginally below its previous estimate. These figures are seasonally adjusted and annualized.
Economic growth varied across different states during the second quarter. Real GDP expanded in 44 states and the District of Columbia, with New York experiencing a 4.0% increase. West Virginia, however, saw a decline of 2.3%. Current-dollar personal income grew by $314.3 billion, or 4.7% at an annualized rate. Personal income increased in 49 states plus the District of Columbia. The latest figures incorporate the U.S. Bureau of Economic Analysis’s 2026 annual national and regional accounts updates.