Second Quarter GDP Revised Upward — What That Means

The economy grew by an annual rate of 2.2% in the second quarter. First-quarter GDP was also revised upward.

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Updated Sep 30, 2026

Updated on Sept. 30.

Real gross domestic product grew by an annual rate of 2.2% in the second quarter of 2026 according to the third estimate released on Sept. 30 by the Bureau of Economic Analysis.

That’s up from 1.5% in the second estimate released in August. Investments, consumer spending and government spending were all revised upward from the second estimate.

First-quarter GDP was also revised upward to 2.5% from the previously published 2.1%.

GDP was negative in the first quarter of 2025, rebounded to 3.8% in the second quarter, rose by 4.4% in the third quarter and finished slower at 0.5% in the final quarter.

» MORE: Are we in a recession?

What is GDP?

GDP, or gross domestic product, is the market value — in current dollars — of all goods and services produced within the United States in a given period; Real GDP adjusts that measure for inflation. Changes in GDP are expressed on an annualized basis.

Does recent GDP data signal there is trouble ahead?

Second quarter growth in 2026 increased at 1.5%, slower than the first quarter (2.1%). In 2025, real GDP increased 2.1%.

Negative growth, or contraction, is generally a red flag that there is a slowdown happening in the economy. It shows that consumers and businesses may be spending less. Two consecutive quarters without growth is the traditional definition of a recession.

Current growth in the economy is largely driven by consumer spending and AI investment. Uncertainty is driven by the continuing war in Iran and ever-evolving trade policies.