Second-quarter GDP surges to 4.1 percent, showing strength of 'Trump economy'

Second-quarter GDP surges to 4.1 percent, showing strength of 'Trump economy'

Second-quarter GDP surges to 4.1 percent, showing strength of 'Trump economy'

Between the start of April and the end of June, America's GDP grew at a 4.1 percent annual rate; during his failed presidential bid, Jeb Bush promised to deliver a mere 4.o.

Former President Barack Obama was doubtful the man who followed him into the Oval Office could fix the sluggish USA economy, but a federal report made public Friday provides solid evidence President Donald Trump is doing just that.

Mr Trump, who has repeatedly attacked the economic record of his predecessor's administration, pledged during the 2016 campaign to double growth to four percent or better.

First-quarter growth tends to undershoot the rest of the year because of the so-called residual-seasonality issue that stems from how the Commerce Department adjusts for calendar and holiday effects. They showed a higher household-saving rate than previously reported, as well as faster growth in the first quarter of recent years, though the overall narrative of the economy's performance over the last decade wasn't much different. It rose 4.3 percent in the second quarter, up from 2 percent in the first quarter.

The economy grew by more than 4 percent in the second quarter of 2018, however.

In the second quarter, economic growth hit its fastest pace of growth since the third quarter of 2014.

"One of the more underreported stories is we now have a trade deficit that dropped by more than $50 billion", said Hannity.

But in 2020 - a presidential election year - Zandi said he is forecasting economic growth of just 0.9 percent, a pace that is so slow that it will raise the threat of a recession.

The $1.5 trillion tax cut passed by Congress late in 2017 was part of President Donald Trump's plan to boost economic growth to the above 3 per cent annual growth rate that marked the robust expansions of the 20th century. As businesses and consumers reset on account of lower tax rates, year-over-year spending hikes will dissipate.

Personal consumption expenditures increased 4 percent while business investment jumped 7.3 percent, and government spending was up by 3.5 percent. If growth continues at 3.0 percent the next two quarters, then real GDP growth will indeed make it to 3.1% for all of 2018. Canada, Mexico and the European Union also imposed new duties in recent weeks on some United States exports in retaliation for USA tariffs on steel and aluminium. Government spending also posted a solid gain, rising at a 2.1 percent rate. In fact, out of the 32 quarters that president Obama was in office, 15 of them had an annualized growth rate north of 2%.

"This morning's data confirms that growth has accelerated and that inflation is running close to the target", the report said.

"What we're seeing in the Trump economy is wages going up for the first time in a long time", Peter Navarro, the top trade adviser to the president, told NPR Friday before the GDP report was released.

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