U.S. GDP growth revised up to 2.2% in second quarter as investment and consumer spending strengthen

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US GDP growth revised up

Highlights

U.S. real GDP annualized growth for Q2 2026 is revised up to 2.2% from the prior estimate, driven by stronger investment, consumer, and government spending.
Corporate profits from current production rise by $384.0 billion in Q2, while inflation metrics such as the PCE price index increase 5.0% but are revised slightly lower.
Real GDP rises in 44 states and D.C. with New York leading at 4.0%, while current-dollar personal income grows $314.3 billion or 4.7% annually across 49 states and D.C.

Revised second-quarter growth and industry drivers

As reported by U.S. Bureau of Economic Analysis, real gross domestic product increases at an annual rate of 2.2% in the second quarter of 2026, up from the prior estimate by 0.7 percentage point. The agency says the upward revision primarily reflects stronger investment, consumer spending, and government spending, while first-quarter real GDP growth is revised to 2.5%.

Consumer spending, investment, and exports contribute to the second-quarter increase in output, while imports also increase and act as a subtraction in the GDP calculation. From an industry perspective, real value added rises 2.5% for private services-producing industries, 2.3% for private goods-producing industries, and less than 0.1% for government.

Real estate and rental and leasing, information, durable goods manufacturing, and finance and insurance are the leading contributors to growth. Transportation and warehousing, retail trade, and nondurable goods manufacturing partly offset those gains.

Other related measures also strengthen in the quarter. Real final sales to private domestic purchasers increase 4.6%, real gross output rises 5.0%, and real gross domestic income advances 2.6%, while the average of real GDP and real GDI increases 2.4%.

Corporate profits from current production increase by $384.0 billion in the second quarter, although that figure is revised down by $16.9 billion from the previous estimate. At the same time, the price index for gross domestic purchases rises 5.6%, the PCE price index increases 5.0%, and the core PCE measure excluding food and energy climbs 3.3%, with each of those inflation readings revised slightly lower.

State economies post broad gains

Across the states, real GDP increases in 44 states and the District of Columbia in the second quarter of 2026. The annualized change ranges from 4.0% in New York to a 2.3% decline in West Virginia.

Finance and insurance is the leading contributor to real GDP growth in both New York and Delaware, while mining is the leading contributor to declines in West Virginia and Wyoming. The regional data suggest service-related industries continue to play a major role in output gains, while energy-linked states remain more uneven.

Current-dollar personal income increases by $314.3 billion, or 4.7% at an annual rate, in the second quarter. Personal income rises in 49 states and the District of Columbia, with Wisconsin posting the strongest gain at 6.4% and North Dakota recording a 4.2% decline.

Earnings increase in 48 states and the District of Columbia, ranging from a 7.3% gain in Minnesota to a 9.3% drop in North Dakota. Property income rises in all 50 states and the District of Columbia, while transfer receipts increase in 48 states but decline in the District of Columbia.

The release also includes the 2026 annual update of the National and Regional Economic Accounts, covering the first quarter of 2021 through the first quarter of 2026. BEA says the update results in revisions to GDP, GDP by industry, gross domestic income, and state-level income and spending data, while the reference year remains 2017.

In our earlier coverage of the revised U.S. second-quarter GDP figures, we noted that growth was upgraded to a 2.2% annualized pace, alongside an upward revision to first-quarter growth. The update pointed to firmer domestic demand, led by stronger consumer spending and business investment—particularly AI-related outlays—even as inflation pressures and higher interest rates continued to weigh on households.

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