US economic growth was stronger than previously estimated in the second quarter of 2026, with real gross domestic product (GDP) rising at an annual rate of 2.2%, according to the third estimate released by the US Bureau of Economic Analysis (BEA).
The latest estimate gives us a sharp upward revision from the second estimate, which had put GDP growth at 1.5%. The first, or advance, estimate had also shown growth of 1.5%.
The revision was due to major factors including stronger estimates for investment, consumer spending and government spending. Consumer spending remained the biggest contributor to growth, and investment and exports also supported the economy.
In the first quarter of 2026, real GDP increased 2.5%, according to the revised estimate. The BEA data also showed that real final sales to private domestic purchasers, which combine consumer spending and gross private fixed investment, rose 4.6% in the second quarter. This was 0.4 percentage point higher than the previous estimate.
Consumer spending, investment improve GDP growth
Consumer spending made the largest contribution to the 2.2% increase in real GDP during the quarter. The contribution from consumer spending was revised higher across the three estimates, rising from about 2.1 percentage points in the advance estimate to 2.5 percentage points in the third estimate.
Investment also made a stronger contribution in the latest estimate. Its contribution increased to about 0.8 percentage point, compared with roughly 0.4 percentage point in the advance estimate.
Exports added around 0.5 percentage point to GDP growth. Imports also increased during the quarter. Since imports are subtracted when GDP is calculated, higher imports had a negative contribution to overall GDP growth.
Government spending had a small negative contribution in the latest estimate, although the figure improved from the earlier estimates.
The increase in economic activity was also impacted in gross domestic output. Real gross output rose 5.0% in the second quarter. Private services-producing industries recorded a 6.0% increase in real gross output, while private goods-producing industries increased 3.0%. Government gross output rose 2.6%.
Real gross domestic income, another measure of economic activity, increased 2.6% in the second quarter. This was revised up 0.4 percentage point from the second estimate. The average of real GDP and real GDI increased 2.4%, up 0.6 percentage point from the previous estimate.
Real estate, information and manufacturing lead industries
The growth in GDP was spread across several parts of the economy, with private services and goods-producing industries recording strong gains.
Real value added in private services-producing industries increased 2.5% in the second quarter. Private goods-producing industries increased 2.3%, while government value added rose by less than 0.1%.
Real estate and rental and leasing was the biggest industry contributor to GDP growth, adding 0.57 percentage point. The information industry added 0.52 percentage point.
Durable goods manufacturing and finance and insurance each contributed 0.50 percentage point. Wholesale trade added 0.33 percentage point, while professional, scientific and technical services contributed 0.28 percentage point.
Health care and social assistance added 0.15 percentage point. Construction contributed 0.14 percentage point, followed by utilities at 0.13 percentage point.
Agriculture, forestry, fishing and hunting added 0.04 percentage point. State and local government also contributed 0.04 percentage point. Accommodation and food services added 0.03 percentage point, while educational services contributed 0.03 percentage point. Administrative and waste management services added 0.02 percentage point.
Several industries reduced growth. Transportation and warehousing was the biggest drag, cutting 0.37 percentage point from GDP. Retail trade reduced growth by 0.27 percentage point, and nondurable goods manufacturing lowered it by 0.18 percentage point.
Mining reduced GDP growth by 0.12 percentage point. Management of companies and enterprises reduced growth by 0.05 percentage point, and federal government reduced it by 0.03 percentage point. Arts, entertainment and recreation lowered growth by 0.02 percentage point.
Inflation measures ease slightly, corporate profits rise
The latest GDP report also showed changes in prices and corporate profits. Profits from current production, which include corporate profits with inventory valuation and capital consumption adjustments, increased by $384.0 billion in the second quarter. The increase was revised down by $16.9 billion from the previous estimate.
The price index for gross domestic purchases increased 5.6% in the second quarter. This was 0.2 percentage point lower than the second estimate.
The personal consumption expenditures, or PCE, price index increased 5.0%, down 0.3 percentage point from the previous estimate. The PCE price index excluding food and energy, a closely watched measure of underlying inflation, increased 3.3%, also 0.3 percentage point lower than the earlier estimate.
Current-dollar GDP, which measures economic output without adjusting for inflation, increased 8.5% in the third estimate. It was previously estimated at 8.0%, while the advance estimate had put the increase at 7.9%.