The US economy grew at an annual rate of 2.2 per cent in the second quarter of 2026, according to a revised estimate from the Commerce Department. The figure was higher than the government’s earlier estimate of 1.5 per cent.
Growth between April and June was supported by stronger consumer spending and business investment. Consumer spending, which accounts for about 70 per cent of US economic activity, increased at an annual rate of 3.8 per cent. That compared with growth of just 0.7 per cent in the first quarter.
Business investment excluding housing also increased sharply, rising at a 9 per cent annual rate. Investment in artificial intelligence and related technology was among the areas contributing to business spending.
The revised second-quarter growth was slower than the 2.1 per cent expansion recorded in the first quarter. However, the new figure was significantly higher than the previous government estimate and exceeded expectations for little or no revision.
Housing investment also increased by 2.8 per cent during the quarter, marking its first rise since late 2024. Core GDP, which excludes volatile components such as government spending and trade, increased at a 4.6 per cent annual rate.
A sharp rise in imports limited the overall growth figure. Imports increased by 12.6 per cent and reduced GDP growth by almost 1.7 percentage points, according to the revised data.
The latest figures provide an updated picture of economic activity ahead of the release of the first estimate for the third quarter. The next GDP estimate is expected on October 29.
