WASHINGTON, DC / RankWire.AI / – The U.S. Bureau of Economic Analysis announced an upward revision of the country’s second-quarter growth rate to 2.2% on an annual basis for 2026. This update modifies its previous estimate of 1.5%, reflecting economic activity from April through June. Additionally, officials adjusted the first-quarter growth figure upward from 2.1% to 2.5%. The revised data indicates a more robust domestic economy across several key components than earlier calculations suggested.
Much of the second-quarter revision was driven by increased investment, consumer expenditure, and government spending. Growth was supported by consumer and business spending, although higher imports moderated the overall GDP figure, as imports are subtracted when calculating gross domestic product. During this period, current-dollar GDP grew at an 8.5% annual pace. The updated figures also led to revisions in estimates for private inventories, fixed investment, and various household spending categories, painting a broader picture of economic activity.
Private fixed investment saw an uplift based on revised figures for nonresidential structures and residential investments. The construction data now includes commercial projects and healthcare facilities, with data centers among categories impacting nonresidential structures. Consumer spending estimates also increased for both goods and services, with recreational goods, vehicles, and recreation services contributing significantly to the upward revision. These adjustments pushed the final GDP estimate above the previous second-quarter figure.
Indicators of domestic demand show improvement
Real final sales to private domestic purchasers rose at a 4.6% annual rate in the second quarter, up from the earlier estimate of 4.2%. This measure combines consumer spending and private fixed investment, excluding some more volatile GDP components. Meanwhile, real gross domestic income grew by 2.6% during the same period. The average of real GDP and real gross domestic income increased by 2.4%, offering further insights into production and income levels across the U.S. economy.
Corporate profits from current production saw a boost of $384 billion in the second quarter. Private service-producing industries contributed a 2.5% increase in real value added, while private goods-producing sectors grew by 2.3%. The government sector’s contribution was minimal, less than 0.1%. Overall, real gross output expanded by 5.0%, with services industries up 6.0%, goods industries increasing 3.0%, and government output advancing 2.6% during this period.
Price indexes remain high
The personal consumption expenditures price index grew at a 5.0% annual rate in the second quarter, slightly below the previous estimate of 5.3%. The core PCE, which excludes food and energy, increased at a 3.3% rate, compared to the earlier estimate of 3.6%. The gross domestic purchases price index rose by 5.6%. The Economic growth figures are reported at seasonally adjusted annual rates, which differ from year-over-year inflation measurements.
Economic conditions varied across states in the second quarter. Real GDP increased in 44 states and the District of Columbia, with New York experiencing a 4.0% growth and West Virginia seeing a 2.3% decline. Personal income in current dollars rose by $314.3 billion, representing a 4.7% annual increase. Personal income grew 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.