US Q2 GDP Growth Revised Higher to 2.2%

• The US economy expanded at a 2.2% annualised rate in Q2 2026, supported by robust consumer spending and business investment related to the buildout of AI infrastructure. This was revised sharply higher from the previously estimated 1.5% pace.
• Consumer spending, which accounts for more than two-thirds of US economic activity, grew at a 3.8% annualised rate, up from the previously reported 3.4%. This marked a sharp acceleration from the 0.7% pace recorded in Q1 and helped support stronger overall growth.
• Business investment also remained strong, particularly spending associated with the buildout of artificial intelligence infrastructure. Equipment investment maintained double-digit growth during the quarter, providing another important source of support for the economy.
• Final sales to private domestic purchasers, a key measure of underlying domestic demand, increased at a 4.6% annualised pace, from the previously reported 4.2%, and well above the revised 1.8% growth recorded in Q1.
• Gross domestic income (GDI) rose at a 2.6% annualised rate, while the average of GDP and GDI, referred to as gross domestic output, increased 2.4%, up from the previous 1.8% estimate. However, higher inflation and gasoline prices continue to pressure household budgets despite the resilience in spending.
• Stronger-than-expected underlying demand suggests continued resilience in the US economy; however, elevated inflation and weaker consumer sentiment remain risks to the outlook.

(Source: Reuters)