The U.S. economy grew at a 2.2% annual rate in the second quarter of 2026, an upgrade from the Commerce Department’s previous estimate of 1.5%. 

Consumer spending, which accounts for roughly 70% of economic activity, increased at a 3.8% annual pace, while business investment outside housing rose 9%, driven in part by continued investment in artificial intelligence. 

Imports rose 12.6% and reduced reported GDP growth by nearly 1.7 percentage points, while a measure that excludes volatile government spending and trade showed the economy expanding at a stronger 4.6% rate. 

The report also showed residential investment increasing 2.8%, its first quarterly increase since the end of 2024 despite elevated mortgage rates, the AP has reported.

The figures indicate continued economic growth, although economists noted that recent expansion has become increasingly connected to AI investment and wealth-driven consumer spending, leaving the economy potentially sensitive to a reversal in enthusiasm for AI.