U.S. Economy Grows at 2.2 Percent Annual Rate in Second Quarter as Revisions Lift Key Measures

National GDP Growth and Revisions

Real gross domestic product increased at an annual rate of 2.2 percent in the second quarter of 2026, according to the third estimate from the U.S. Bureau of Economic Analysis. This represents an upward revision of 0.7 percentage point from the second estimate. The first-quarter growth rate was revised to 2.5 percent from a previously reported 2.1 percent.

The latest estimate reflects contributions from consumer spending, investment, and exports, even as imports rose and subtracted from overall GDP. Revisions to the second-quarter figure were driven primarily by upward adjustments to investment, consumer spending, and government spending. These changes underscore the iterative nature of economic data releases, where initial estimates are refined as additional source data become available.

Industry Contributions to GDP

From an industry perspective, real value added rose 2.5 percent for private services-producing industries and 2.3 percent for private goods-producing industries, while government value added increased by less than 0.1 percent. Leading contributors to the overall GDP increase included real estate and rental and leasing, information, durable goods manufacturing, and finance and insurance.

Offsets to growth came from declines in transportation and warehousing, retail trade, and nondurable goods manufacturing. Real gross output increased 5.0 percent in the quarter, with private services-producing industries advancing 6.0 percent, private goods-producing industries rising 3.0 percent, and government output growing 2.6 percent. These industry-level details provide a granular view of where economic activity strengthened or weakened during the period.

Related Economic Measures and Corporate Profits

Real final sales to private domestic purchasers, which combines consumer spending and gross private fixed investment, increased 4.6 percent in the second quarter, revised upward by 0.4 percentage point from the prior estimate. Real gross domestic income rose 2.6 percent, also revised higher, resulting in an average of real GDP and real GDI that climbed 2.4 percent.

Profits from current production increased by $384.0 billion, though this figure was revised downward by $16.9 billion from the second estimate. The price index for gross domestic purchases advanced 5.6 percent, while the personal consumption expenditures price index rose 5.0 percent. Excluding food and energy, the PCE price index increased 3.3 percent. All of these inflation measures were revised slightly lower than in the previous release, suggesting a marginally softer price environment than initially thought.

State-Level GDP and Personal Income

Real GDP increased in 44 states and the District of Columbia, with growth rates ranging from 4.0 percent in New York to a decline of 2.3 percent in West Virginia. Finance and insurance contributed significantly to gains in states such as New York and Delaware, while mining weighed on performance in West Virginia and Wyoming. These regional disparities highlight the uneven distribution of economic momentum across the country.

Current-dollar personal income rose $314.3 billion, equivalent to a 4.7 percent annual rate. Increases occurred in 49 states and the District of Columbia, ranging from 6.4 percent in Wisconsin to a 4.2 percent decline in North Dakota. Earnings grew in 48 states, with changes spanning 7.3 percent in Minnesota to a 9.3 percent drop in North Dakota. Property income advanced in every state and the District of Columbia.

Personal Consumption Expenditures by State and Annual Updates

For the full year 2025, current-dollar personal consumption expenditures increased 5.3 percent nationally and rose in all 50 states and the District of Columbia. Growth ranged from 7.0 percent in Florida to 4.2 percent in California, with health care and housing and utilities serving as leading contributors in most states, including the strongest performer, Florida. These figures reflect broad-based consumer demand across regions in the prior year.

The release incorporates results from the 2026 annual update of the national and regional economic accounts, covering the period from the first quarter of 2021 through the first quarter of 2026. Revisions affected GDP, GDP by industry, gross domestic income, and major components, though the reference year remains 2017. For the first quarter of 2026 specifically, real GDP is now estimated at 2.5 percent growth, with notable adjustments to industry value added, real gross output, and income measures based on updated source data.

Source

U.S. Bureau of Economic Analysis published this record on 2026-09-30. Pennington Financial accessed it on 2026-10-10.