The U.S. economy expanded at an annual rate of 2.2% from April to June, according to the Commerce Department. This marks a decrease from a 2.5% growth rate in the first quarter but is an improvement over the initial estimate of 1.5%.
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Strong consumer spending and business investment contributed to this growth. Consumer spending, which constitutes approximately 70% of U.S. economic activity, rose by 3.8% during the second quarter, an increase from 0.7% in the previous quarter.
However, the growth rate was negatively impacted by a 12.6% increase in imports, particularly due to a rise in shipments of computer chips and products related to artificial intelligence investment. This surge in imports reduced the overall growth by nearly 1.7 percentage points.
Despite facing external challenges, such as conflicts with Iran and a subsequent spike in energy prices, the economy showed resilience. Business investment, excluding housing, grew by 9%, driven largely by continued interest in AI technologies. Additionally, a key indicator of economic strength, which excludes volatile government spending and trade data, grew at a robust rate of 4.6%, up from 1.8% in the first quarter.
Investment in housing saw a 2.8% increase for the first time since late 2024, despite ongoing pressure from high mortgage rates. This report, released on September 30, 2026, is the third and final estimate for second-quarter GDP, with the first estimate for third-quarter growth expected on October 29.