US Q2 GDP, PCE Growth Revised Up Sharply, Price Growth Revised Lower

08:53 AM EDT, 09/30/2026 (MT Newswires) -- US economic growth, measured by gross domestic product, rose by 2.2% in Q2, revised up significantly from a 1.5% gain in the second estimate, compared with expectations for no revision in a survey compiled by Bloomberg as of 7:40 am ET. GDP rose by 2.5% in Q1 after annual revisions. Personal consumer expenditures rose by 3.8% after a 0.7% gain in Q1, an upward revision from a 3.4% increase in the second estimate. There were also upward revisions to the contributions from nonresidential fixed investment, residential fixed investment, government spending, private inventories and net exports. The gross domestic product price index rose by 6.1%, revised down from a 6.4% increase in the second reading after a 3.2% increase in the previous quarter, with the overall PCE and core PCE price measures growing slower than in the previous estimate. The advance estimate of Q3 GDP is scheduled to be released on Oct. 29. The quarterly measure of gross domestic product, or GDP, is released by the US Bureau of Economic Analysis at three stages, with the advance reading about a month after the end of a quarter, followed by second and third readings for the same quarter two and three months after quarter-end. The data are broken down by each of the GDP components: consumption, fixed investment (which includes residential and nonresidential investment and inventories), government spending, and net exports (exports minus imports). The report also includes prices measures for the overall reading and the categories. Strong GDP growth is a positive for stocks, but a negative for bonds, especially if it is accompanied by sharp inflation gains.