US economy grows 2.8% in Q2, topping forecasts

The US economy expanded at a 2.8% annualized rate in the second quarter of 2026, according to the Commerce Department, outpacing economists’ expectations of 2.1%. The data suggests growth remained sturdy despite ongoing pressure from higher borrowing costs and uncertain global conditions.

Consumer spending and business investment were the main drivers of the stronger-than-expected performance. Those categories helped offset weaker areas of the economy and supported the broader rebound in activity after a slower start to the year.

The latest GDP report adds to signs that the US has kept a steady footing even as policymakers weigh the timing of future interest-rate moves. Economists will now look for whether the pace of demand can hold in coming months or begins to cool under the strain of tighter financial conditions.

While one quarter does not define the full outlook, the stronger reading gives the economy a more resilient near-term profile than many analysts had projected. Markets and policymakers will likely focus on whether household spending can continue to carry growth through the second half of the year.