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

Trump Breaks Tradition on GDP Figures

Trump Breaks Tradition on GDP Figures

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.

Recommended News

  • Local Syrian official says as many as 90 killed

    Local Syrian official says as many as 90 killed

    Syrian state media reported deadly attacks on Sweida and surrounding villages but did not give a specific toll. Bou Ammar, from Shbiki, said there weren't many men left to defend the village when the militants attacked.
    Priyanka Chopra and Nick Jonas are reportedly engaged!

    Priyanka Chopra and Nick Jonas are reportedly engaged!

    In his tweet announcing her exit, director Ali Abbas Zafar has broadly hinted that Priyanka exited Bharat to get married. The singer popped the question to the actress on her 36th birthday and we've got all the details.
    Arsenal boss Unai Emery confident Aaron Ramsey will sign new deal

    Arsenal boss Unai Emery confident Aaron Ramsey will sign new deal

    The Gunners though are not prepared to pay the 29-year-old's €40m release clause as Arsenal fans took to Twitter to express themselves.
  • Vladimir Putin invites Donald Trump to Moscow

    Vladimir Putin invites Donald Trump to Moscow

    The White House complained about questions she shouted to Trump earlier about Russian Federation and Michael Cohen. Aide Yuri Ushakov said that while a meeting should take place, " it would be wise to let the dust settle " first.
    Underground lake with liquid salt water found on Mars

    Underground lake with liquid salt water found on Mars

    The location's radar profile resembled that of subglacial lakes found beneath Earth's Antarctic and Greenland ice sheets. However, the planet's climate has since cooled due to its thin atmosphere, leaving most of its water locked up in ice.
    Facebook has worst day in stock market history

    Facebook has worst day in stock market history

    In North America, the daily user number was flat at 185 million, and in Europe it actually declined by three million people a day. They believe users have woken up to Facebook's growing list of controversies and chose to vote with their "Log Out" buttons.
  • BRICS bloc signs declaration reaffirming multilateral trade as per WTO rules

    BRICS bloc signs declaration reaffirming multilateral trade as per WTO rules

    Two people out of every five people on the planet is from a BRICS country. BRICS takes up 26 per cent of the world's land mass. After all, that is in Africa's interests.
    Tour de France: Stage 16 highlights

    Tour de France: Stage 16 highlights

    Froome has been a repeated target of fans in this Tour after he was cleared of doping five days before the race began. The incident prompted an angry exchange between Froome and the police officer, before the Sky rider rode away.
    Possible lake spotted under a polar ice cap-on Mars

    Possible lake spotted under a polar ice cap-on Mars

    However, Stillman, who was not involved in the research, said another spacecraft, or other instruments, need to be able to confirm the discovery.
  • Baddeley in the mix at PGA's Canadian Open

    Baddeley in the mix at PGA's Canadian Open

    Tway birdied the par-5 18th hole to take the clubhouse lead midway through the second round of the RBC Canadian Open on Friday. Langer shot a 5-under 67 and was tied for fifth alongside former PGA champion David Toms and another American, Scott McCarron.
    Trump threatens Turkey sanctions over pastor

    Trump threatens Turkey sanctions over pastor

    Trump, tweeting from aboard Air Force One , called Brunson "a great Christian, family man and wonderful human being". Ankara accuses Gulen of masterminding the failed coup , and has long sought his extradition to Turkey.
    Avenatti pitched Michael Cohen on working together against Trump, source says

    Avenatti pitched Michael Cohen on working together against Trump, source says

    American Media Inc., which publishes the National Enquirer , purchased the rights to McDougal's story for $150,000 in August 2016. There is allegedly no talk of using campaign money to make the payments on the recording.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.