US GDP Grew 2.2% in Q2 2026, Upgraded From 1.5% on Strong Consumer Spending, AI Investment

The U.S. economy grew at a 2.2% annual pace in the second quarter of 2026, the Commerce Department said on Wednesday, upgrading its prior estimate of 1.5%. Growth decelerated from 2.5% in the first quarter. Consumer spending, about 70% of economic activity, rose 3.8%, up from 0.7% in the prior quarter. Business investment excluding housing climbed 9%, reflecting the AI investment boom. A measure of underlying strength, stripping out government spending and trade, grew 4.6% versus 1.8%. Imports surged 12.6%, partly on computer chips supporting AI investment, subtracting nearly 1.7 percentage points from growth. Housing investment rose 2.8%, its first increase since the end of 2024, though high mortgage rates continue to weigh on the market. This was the Commerce Department's final of three Q2 estimates. The first look at third-quarter growth is due Oct. 29.