US Q2 GDP revised sharply up to 2.2%, inflation still elevated
Growth revised up alongside a full annual account rewrite: the US second quarter was stronger than first reported, but core inflation remains above 3%.
US second-quarter growth was revised sharply upward; inflation eased less.
The Bureau of Economic Analysis released its third estimate on September 30: real GDP grew at a 2.2 percent annual rate in the second quarter, revised up 0.7 percentage point from the second estimate, mainly on upward revisions to investment, consumer spending and government spending. The advance estimate was 1.5 percent.
On prices, the PCE price index rose at a 5.0 percent annual rate, and 3.3 percent excluding food and energy — both revised down 0.3 percentage point, but core inflation remains well above the 2 percent target.
The same release includes the annual update, which rewrites the national accounts from Q1 2021 through Q1 2026; first-quarter GDP was revised up to 2.5 percent on the new basis. Earlier growth and inflation readings should be re-read on the revised basis.