U.S. economy grew a solid 2.2% in the second quarter, government says, upgrading previous estimate

U.S. Economy grew a solid 2.2% in the.

Key points

• Job market rebounds as employers add 162, 000 jobs; the unemployment rate stayed at 4.1%.
• Claims for unemployment benefits drop to 197, 000, the lowest since mid-July as layoffs remain rare.
• Investment in housing rose 2.8% ticking up for the first time since the end of 2024.
• Stocks obtained a boost after the rate for a barrel of Brent crude oil slid 1% to settle back below $105.
• MDA Executive Director Cork retires; Governor Reeves appoints Waldrop to lead economic development agency.

U.S. Economy grew a solid 2.2% in the second quarter, administration states, upgrading previous estimate. By: Paul Wiseman, Associated Press – September 30, 2026.

FILE – A shop owner reaches into a drink display refrigerator at his convenience store in Kent, Wash., Oct. 1, 2018. (AP Photo/Elaine Thompson, File).

In practice, the second-quarter expansion number was an improvement on the department's previous estimate of 1.5%. Consumer spending – which accounts for regarding 70% of U.S. Economic activity – climbed at a healthy 3.8% annual pace, up from 0.7% in the January-March period.

WASHINGTON (AP) – The U.S. Economy grew at a solid 2.2% pace from April through June as consumer spending and business investment came in solid.

Expansion in gross domestic product – the nation's output of a goods and services – decelerated from a 2.5% pace from January through March, the Commerce Department noted Wednesday. The second-quarter expansion was an improvement on the department's previous estimate of 1.5% – a surprise to economists who had anticipated little or no change in the GDP number.

Consumer spending – which accounts for regarding 70% of U.S. Economic activity – climbed at a healthy 3.8% annual pace, up from 0.7% in the January-March period. Spending has been supported by a robust stock market. It reflects enthusiasm over the prospects for artificial intelligence and which enriches wealthy investors and gives them more funds to purchase things with.

In practice, the overall expansion number was dragged down by imports. They are subtracted from expansion as GDP is only supposed to count domestic production. Imports rose at a 12.6% annual pace from April through June, partly due to a surge in shipments of computer chips and other products that backing artificial intelligence investment, and slashed almost 1.7 percentage points off second-quarter expansion.

In practice, the U.S. Economy has proven surprisingly resilient in the face of fighting with Iran and the energy cost spike it caused.

Business investment, excluding housing, rose at a 9% clip in the second quarter, reflecting the AI investment boom. And a measure of the economy's underlying strength – which strips out volatile administration spending and trade numbers – grew at a robust 4.6% rate, up from 1.8% in the first quarter.

"The economy is increasingly reliant on AI gains and the corresponding wealth effects boosting higher-income households' spending power to fuel recent growth, " remarked Michael Pearce, chief U.S. Economist at Oxford Economics. "The economy remains sensitive to a sudden reversal of optimism on AI."

Investment in housing rose 2.8% ticking up for the first time since the end of 2024. The housing market has been depressed by high mortgage rates.

Wednesday's report was the last of three Commerce Department estimates of second-quarter GDP expansion. The first look at third-quarter expansion is due Oct. 29. Regarding the Author(s). Paul Wiseman, Associated Press. News Paul Wiseman, Associated Press September 29, 2026.

U.S. Job openings slipped to 7.1 million in August but labor market remains sturdy.

In practice, the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) additionally demonstrated that layoffs fell and the number of individuals quitting their jobs – a sign of confidence in their prospects – was little changed in August. More From This Author. Economy Paul Wiseman, Associated Press September 24, 2026.

Claims for unemployment benefits drop to 197, 000, the lowest since mid-July as layoffs remain rare. News Paul Wiseman, Associated Press September 4, 2026.

U.S. Job market rebounds as employers add 162, 000 jobs; the unemployment rate stayed at 4.1%. News Paul Wiseman, Associated Press August 26, 2026.

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U.S. Stocks rally to their best day in 6 weeks after oil rates and bond yields ease.

Stocks obtained a boost after the rate for a barrel of Brent crude oil slid 1% to settle back below $105. That supported pull the yield on the 10-year Treasury down to 4.93%. News Christopher Rugaber, Associated Press September 16, 2026.

Federal Reserve hikes key rate for first time in 3 years, defying Trump demands for a cut.

Notably, the quarter-point growth lifts the Fed's key rate to concerning 3.9% and, over time, could result in higher borrowing costs for mortgages, auto loans, and credit cards. News Frank Corder September 30, 2026.

MDA Executive Director Cork retires; Governor Reeves appoints Waldrop to lead economic development agency. News Qassim Abdul-Zahra, Associated Press September 30, 2026.

U.S. Military notes its withdrawal of troops from Iraq is complete. News Frank Corder September 30, 2026.

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Jackson's own Cassandra Wilson, one of the most successful female jazz singers in modern history. Culture Alistair Begg September 30, 2026. Will He find fruit? Culture Frank Corder September 29, 2026. Mississippi Senators Wicker, Hyde-Smith back Protect College Sport Act. Opinion Roger Wicker September 28, 2026. Putin must be defeated. Opinion Sid Salter September 23, 2026.

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Taken together, the developments around U.S. Economy grew a solid 2.2% in the second quarter, government says, point to a situation that is still moving, and the coming days should bring more clarity.