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The US economy grew at an annual rate of 2.2 per cent in the second quarter (April-June) of 2026, with consumer spending, investment and exports contributing to the expansion, while price pressures remained elevated, according to the latest data released by the US Bureau of Economic Analysis (BEA).
The data highlighted that real GDP growth in the April-June quarter was revised up by 0.7 percentage point from the second estimate, primarily reflecting upward revisions to investment, consumer spending and government spending. In the first quarter, real GDP increased 2.5 per cent, revised from the earlier estimate. The leading industry contributors to the increase in real GDP were real estate and rental and leasing, information, durable goods manufacturing, and finance and insurance. These gains were partly offset by declines in transportation and warehousing, retail trade, and nondurable goods manufacturing. The BEA said, The contributors to the increase in real GDP in the second quarter were consumer spending, investment, and exports. A key indicator of domestic demand showed stronger growth during the quarter. Real final sales to private domestic purchasers, which is the sum of consumer spending and gross private fixed investment, increased 4.6 per cent in the second quarter. The figure was revised up by 0.4 percentage point from the previous estimate. Real gross domestic income (GDI) increased 2.6 per cent in the second quarter, while the average of real GDP and real GDI increased 2.4 per cent. The latest data also showed continued price pressures in the US economy. The price index for gross domestic purchases increased 5.6 per cent in the second quarter. The personal consumption expenditures (PCE) price index increased 5.0 per cent, while the PCE price index excluding food and energy increased 3.3 per cent. From an industry perspective, private services-producing industries recorded a 2.5 per cent increase in real value added, while private goods-producing industries increased 2.3 per cent. Government real value added increased by less than 0.1 per cent. The BEA also said real gross output increased 5.0 per cent in the second quarter, with private services-producing industries rising 6.0 per cent, private goods-producing industries increasing 3.0 per cent, and government rising 2.6 per cent. (ANI)
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