The Bureau of Economic Analysis revised U.S. economic growth for the second quarter to a 2.2% annualized rate, up from the earlier 1.5% estimate. The update showed stronger consumer spending and business investment, providing a revised measure of economic activity during April, May and June.

Key Takeaways

• Second-quarter real U.S. GDP growth was revised to 2.2% from 1.5%
• Consumer spending increased at a 3.8% annualized rate
• Final sales to private domestic purchasers rose at a 4.6% pace
• Gross domestic income increased at a 2.6% annualized rate
• Business spending remained an important contributor to second-quarter activity

U.S. GDP Growth Revised to 2.2% for Second Quarter

The U.S. economy expanded at a 2.2% annualized rate from April through June, according to the Bureau of Economic Analysis’ third estimate released September 30. The figure was revised upward from the 1.5% growth rate reported in the previous estimate.

The revision incorporated updated information from BEA’s annual update of the national economic accounts. The agency released the third GDP estimate alongside updated industry, corporate-profit, state GDP and personal-income data.

Consumer spending was one of the contributors to the stronger second-quarter result. Real consumer spending increased at a revised 3.8% annualized rate, compared with the 3.4% pace reported previously.

Business spending also contributed to economic activity during the quarter. The revised data reflected continued spending on equipment and other productive assets, while data-center construction was among the areas contributing to revisions in private fixed investment.

The GDP report covers economic activity during April, May and June and does not measure current third-quarter conditions.

Consumer Spending Rises at a 3.8% Annualized Rate

Consumer spending increased at a 3.8% annualized rate in the revised second-quarter estimate, above the 3.4% pace reported previously.

Household consumption represents a major component of U.S. economic activity, making changes in spending an important part of the GDP calculation. The stronger revised figure increased the contribution from consumption to the overall second-quarter result.

The quarterly figure should also be distinguished from monthly retail data. GDP captures a broader range of household expenditures, including services, while retail-sales reports concentrate primarily on purchases of goods and food services.

That distinction is visible in recent retail spending patterns, where monthly retail activity has moved differently from broader measures of household consumption.

BEA’s annual update incorporated revised source data and methodological information into the national accounts, contributing to changes in the recorded pace of consumer activity.

Consumer Spending Provides a Larger Contribution

The upward revision to consumer spending was one factor behind the change in the GDP estimate. The revised 3.8% annualized pace was 0.4 percentage point higher than the 3.4% figure in the previous estimate.

The change reflects updated measurements of household consumption during the second quarter rather than a change in the three-month period covered by the report.

Private Domestic Sales Increase at a 4.6% Pace

Real final sales to private domestic purchasers increased at a 4.6% annualized rate in the second quarter. The measure combines consumer spending with gross private fixed investment to provide a separate view of domestic private-sector demand.

The 4.6% pace was higher than the 4.2% rate reported in BEA’s previous estimate. Revisions to consumer spending and private fixed investment contributed to the increase.

Unlike headline GDP, final sales to private domestic purchasers excludes government spending and net exports. The measure therefore focuses more closely on spending by U.S. households and private businesses.

The September 30 annual update also included revisions to national economic accounts covering GDP, gross domestic income and related economic measures.

Business Spending Supports Domestic Demand

Business spending remained another source of activity during the second quarter. Equipment purchases and other fixed expenditures contributed to private-sector demand alongside the increase in household consumption.

The revision to private fixed investment also included stronger estimates for some nonresidential structures, particularly data centers. The activity corresponds with broader AI infrastructure demand trends involving processors, computing capacity and supporting facilities.

Together, consumer spending and business activity contributed to the 4.6% increase in final sales to private domestic purchasers.

Gross Domestic Income Advances 2.6%

Real gross domestic income increased at a 2.6% annualized rate in the second quarter. GDI measures income generated through economic production and provides a separate accounting measure alongside GDP.

The revised GDI figure was higher than the 2.2% rate reported in the previous estimate. The increase accompanied the upward revision to GDP and provided another measure of second-quarter economic activity.

BEA also reported that the average of real GDP and real GDI increased at a 2.4% annualized rate.

GDP and GDI cover the same economic activity from different sides of the national accounts. GDP measures production, while GDI measures the income generated through that production.

The updated figures were released as part of BEA’s 2026 annual update, which revised portions of the national economic accounts covering earlier periods as well as the latest quarter.

Business Spending Remains a Key Part of Second-Quarter Growth

Business spending continued to contribute to economic activity during the second quarter, alongside the stronger consumer-spending figures.

Spending on equipment remained elevated during the period, while artificial-intelligence infrastructure and data-center development were among the areas associated with business capital activity. The combination of equipment purchases, structures and other fixed expenditures helped support private domestic demand.

The revised GDP figure remains a historical estimate rather than a forecast. It measures economic activity during the April-through-June quarter using updated source information incorporated into BEA’s national accounts.

BEA’s next scheduled GDP release will provide the advance estimate for third-quarter economic activity, offering the first comprehensive federal measure covering July through September.

Frequently Asked Questions

What was U.S. GDP growth in the second quarter of 2026?

Real U.S. GDP increased at a 2.2% annualized rate in the second quarter, according to the BEA’s third estimate. The estimate covers economic activity during April, May and June 2026.

Why was second-quarter GDP revised higher?

The revision incorporated updated economic information and stronger readings across several components, including consumer spending and private investment. Consumer spending was revised to a 3.8% annualized rate from 3.4%.

How much did consumer spending increase in the second quarter?

Real consumer spending increased at a 3.8% annualized rate in the revised second-quarter estimate, making household consumption one of the contributors to overall economic growth.

What happened to U.S. business spending in the second quarter?

Business spending continued to contribute to second-quarter economic activity, including expenditures on equipment and fixed assets. Data-center construction was also among the areas reflected in revisions to private fixed investment.

What is the revised second-quarter GDP estimate based on?

The 2.2% figure is BEA’s third estimate of real GDP for April through June 2026. The release incorporated updated source information as part of the agency’s 2026 annual update of the national economic accounts.