US Q2 2026 GDP Revised Up to 2.2 Percent
The U.S. economy grew at a 2.2% annualized rate in the second quarter of 2026, a significant upward revision from the prior 1.5% estimate.
The U.S. Bureau of Economic Analysis raised its estimate for real GDP growth in the second quarter of 2026 to an annual rate of 2.2 percent. This third estimate, released on Wednesday, marks a 0.7 percentage point upward revision from the prior estimate of 1.5 percent.
Drivers behind the upward revision
The revision was powered by broad-based strength in domestic demand. The BEA stated the change "primarily reflecting upward revisions to investment, consumer spending, and government spending." This trio of components replaced earlier, more modest assessments of economic activity from April through June. The growth builds on a revised 2.5 percent increase in the first quarter of the year.
Broader economic indicators show mixed but resilient trends
While growth accelerated, key inflation measures showed a slight cooling. The price index for gross domestic purchases increased 5.6 percent, revised down 0.2 points. The personal consumption expenditures price index rose 5.0 percent, revised down 0.3 points. The core PCE index, excluding food and energy, increased 3.3 percent, also revised down 0.3 points.
Personal income surged, increasing $314.3 billion, or 4.7 percent at an annual rate. Earnings and personal income rose in nearly every state. Industry-level data revealed solid gains across both goods and services.
| Economic Indicator | Q2 2026 Performance |
|---|---|
| Real Value Added - Private Services-Producing Industries | +2.5% |
| Real Value Added - Private Goods-Producing Industries | +2.3% |
| Real Gross Output | +5.0% |
| Average of Real GDP and Real GDI | +2.4% |
Leading contributors to industry growth included real estate and rental and leasing, information, durable goods manufacturing, and finance and insurance. Offsets came from transportation and warehousing, retail trade, and nondurable goods manufacturing.
State-level divergence highlights regional economic splits
Growth was widespread but uneven across the country. Real GDP increased in 44 states and the District of Columbia. Performance ranged from robust expansion to sharp contraction.
| State | Q2 2026 Real GDP Growth | Leading Contributing Industry |
|---|---|---|
| New York | +4.0% | Finance and Insurance |
| West Virginia | -2.3% | Mining |
| Delaware | Growth Not Specified | Finance and Insurance |
| Wyoming | Decline Not Specified | Mining |
Personal income increased in 49 states and D.C., with Wisconsin leading at 6.4 percent. North Dakota was an outlier, seeing personal income fall 4.2 percent and earnings drop 9.3 percent. Earnings rose in 48 states and D.C., led by Minnesota's 7.3 percent increase.
Corporate profits from current production increased by $384.0 billion for the quarter, though this figure was revised down by $16.9 billion. Real final sales to private domestic purchasers, a key gauge of underlying demand, increased 4.6 percent. The next GDP release is scheduled for October 29, 2026, at 8:30 a.m. EDT.
