US second-quarter GDP growth revised up to 2.2% in third estimate

The U.S. economy grew faster in the spring than previously reported. Real gross domestic product increased at an annual rate of 2.2% in the second quarter of 2026, the Bureau of Economic Analysis said on September 30, 2026, in its third estimate for the April-to-June period. That is 0.7 percentage point higher than the second estimate.

What drove the revision

The BEA said the upward revision primarily reflected "upward revisions to investment, consumer spending, and government spending." Within investment, both private inventory investment and fixed investment were revised up, and spending on consumer services and goods was also higher than previously estimated.

Consumer spending, investment and exports drove growth in the quarter, while imports, which are subtracted in the GDP calculation, increased. Real final sales to private domestic purchasers, the sum of consumer spending and private fixed investment, grew 4.6%, revised up 0.4 percentage point.

By industry, real value added rose 2.5% for private services-producing industries and 2.3% for private goods-producing industries. Real estate, information, durable goods manufacturing and finance led, partly offset by declines in transportation, retail and nondurable goods.

First quarter also revised up

The BEA also revised first-quarter 2026 growth up by 0.4 percentage point to 2.5%, reflecting upward revisions to services exports and consumer spending. Real gross domestic income for the first quarter was revised to 2.5% from the previous 1.2% estimate, based on new wage and salary data.

For the second quarter, real gross domestic income rose 2.6%, revised up 0.4 percentage point, and the average of real GDP and real GDI was 2.4%.

Profits, prices and states

Corporate profits from current production increased $384.0 billion in the second quarter, revised down $16.9 billion from the prior estimate.

Prices rose quickly in the quarter. The personal consumption expenditures price index increased at a 5.0% annual rate, revised down 0.3 percentage point, and the core index excluding food and energy rose 3.3%. The price index for gross domestic purchases increased 5.6%.

Real GDP increased in 44 states and the District of Columbia in the second quarter, with annual rates ranging from 4.0% in New York to negative 2.3% in West Virginia. Personal income across the country rose 4.7%, according to the BEA.

Why it matters

The revised figures show the economy entered the second half of 2026 on firmer footing than earlier data suggested, with growth in both the first and second quarters raised. The data are in line with the Federal Reserve's September 16 statement, which said economic activity is expanding at a solid pace while inflation remains elevated, and the same report shows consumer prices rising at a 5.0% annual rate in the second quarter.

Sources

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.