WASHINGTON, DC / RankWire.AI / – The U.S. Bureau of Economic Analysis has revised its second-quarter 2026 GDP estimate to 2.2% annually, up from the prior 1.5%. This update accounts for economic activity from April through June. Additionally, the agency adjusted the first-quarter growth figure from 2.1% to 2.5%, indicating a more robust domestic economy than previously calculated across several key sectors.
The upward revision was mainly driven by increased investment, consumer expenditure, and government spending. Consumer purchases and business investments contributed significantly, while higher imports lessened the overall GDP figure, as imports are subtracted in GDP calculations. During the quarter, current-dollar GDP grew at an 8.5% annual rate. The updated data also refined estimates for private inventories, fixed investment, and various household spending categories, offering a broader view of overall economic activity.
Private fixed investment gains were supported by higher estimates for nonresidential structures and residential investment. The revised construction data included commercial developments and healthcare facilities, with data centers among the nonresidential categories. Estimates for consumer spending on both goods and services also increased, with recreational goods, vehicles, and recreation services among the sectors that contributed to the upward revision. These adjustments pushed the final GDP estimate above the previous second-quarter figure.
Domestic demand indicators show improvement
During the second quarter, real final sales to private domestic purchasers rose at a 4.6% annual pace. This measure, which combines consumer spending and private fixed investment while excluding some more volatile components of GDP, had previously been estimated at 4.2%. Real gross domestic income also grew by 2.6% in the same period. The average of real GDP and real gross domestic income increased by 2.4%, offering further insight into the production and income generated across the U.S. economy.
Corporate profits from current production grew by $384 billion during the second quarter. Industries in the private services sector boosted real value added by 2.5%, while private goods-producing industries saw a 2.3% rise. The government sector experienced a marginal increase of less than 0.1%. Overall, real gross output expanded by 5.0%. Services-producing industries led with a 6.0% increase, goods-producing industries grew by 3.0%, and government output advanced 2.6% during this period.
Inflation measures stay elevated
The personal consumption expenditures price index increased at a 5.0% annual rate during the second quarter, slightly below the earlier estimate of 5.3%. The core PCE, which excludes food and energy prices, rose at a 3.3% annual rate compared to the previous estimate of 3.6%. The gross domestic purchases price index increased by 5.6%. The U.S. Bureau of Economic Analysis reports these changes seasonally adjusted at annual rates, which differ from the year-over-year inflation figures.
Economic growth varied across states in the second quarter, with real GDP increasing in 44 states and the District of Columbia. New York experienced a 4.0% rise, whereas West Virginia declined by 2.3%. Current-dollar personal income grew by $314.3 billion, a 4.7% annual rate. Personal income expanded in 49 states and the District of Columbia. These latest figures also reflect the agency’s 2026 annual updates to its economic accounts, both nationally and regionally.