The US economy grew at a stronger-than-expected 2.2% annualised pace in the second quarter of 2026, the Commerce Department's Bureau of Economic Analysis said on Wednesday, sharply upgrading its previous estimate of 1.5%.
**Stronger consumers, stronger investment**
The third estimate of April-June GDP came in well above the 1.5% pace economists polled by Reuters had expected. Consumer spending — which accounts for more than two-thirds of US economic activity — grew at a 3.8% rate, revised up from 3.4%, after growing just 0.7% in the first quarter.
Business investment also stayed robust, reflecting the AI infrastructure buildout. Imports rose 12.6% on surging shipments of computer chips and other AI-related products, dragging growth down by nearly 1.7 percentage points, since GDP counts only domestic production.
**Resilience despite headwinds**
The data suggest the economy has held up despite headwinds from the US-Israel war with Iran and higher energy prices. Reuters reported the resilience was aided by aggressive business investment in AI and tax refunds from last year's tax legislation underpinning consumer spending.
Growth was revised up for the first quarter too, to 2.5% from 2.1%, and data going back to 2021 were revised higher. Still, household budgets remain strained by inflation: a Conference Board survey showed US consumer confidence falling to a near 12-1/2-year low in September.
**Sources:** US second-quarter GDP revised higher amid robust consumer spending (Reuters): https://www.reuters.com/world/us/us...her-amid-robust-consumer-spending-2026-09-30/
**Stronger consumers, stronger investment**
The third estimate of April-June GDP came in well above the 1.5% pace economists polled by Reuters had expected. Consumer spending — which accounts for more than two-thirds of US economic activity — grew at a 3.8% rate, revised up from 3.4%, after growing just 0.7% in the first quarter.
Business investment also stayed robust, reflecting the AI infrastructure buildout. Imports rose 12.6% on surging shipments of computer chips and other AI-related products, dragging growth down by nearly 1.7 percentage points, since GDP counts only domestic production.
**Resilience despite headwinds**
The data suggest the economy has held up despite headwinds from the US-Israel war with Iran and higher energy prices. Reuters reported the resilience was aided by aggressive business investment in AI and tax refunds from last year's tax legislation underpinning consumer spending.
Growth was revised up for the first quarter too, to 2.5% from 2.1%, and data going back to 2021 were revised higher. Still, household budgets remain strained by inflation: a Conference Board survey showed US consumer confidence falling to a near 12-1/2-year low in September.
**Sources:** US second-quarter GDP revised higher amid robust consumer spending (Reuters): https://www.reuters.com/world/us/us...her-amid-robust-consumer-spending-2026-09-30/
