United States economic growth hits fastest rate since 2014, Trump rejoices

United States economic growth hits fastest rate since 2014, Trump rejoices

I think the president's wrong on his approach on this tariffs policy and I'm glad that yesterday the agreement with the European Union takes a pause actually starts talking again aims for 0% tariffs.

But many analysts cautioned that growth could cool in coming months.

Meanwhile, orders placed with U.S. factories for business equipment increased in June for a third straight month, a sign of investment momentum heading into the second half despite corporate concerns over tariffs, Commerce Department figures showed Thursday.

Gross domestic product grew at an annualized 4.1 percent rate in the second quarter, the Commerce Department said Friday in its initial estimate for the period. The U.S. economy grew by 2.9 percent in 2015 and 2006, and more than 3 percent in 2004 and 2005.

In other words, foreign companies appear to be importing as many goods as they can from the US before their own governments retaliate against Trump's tariffs with duties of their own. "We're on track to hit the highest annual average growth rate in over 13 years". He also touted record-low unemployment numbers among minorities and fewer Americans on food stamps.

The president called the 4.1 percent rate "amazing" and said, "As the trade deals come in one by one, we're going to go higher".

"We have accomplished an economic turnaround of historic proportions", Trump told reporters at a White House briefing attended by his top economic advisers.

The pace of expansion in consumer spending, which accounts for about 70 percent of the economy, exceeded projections for 3 percent and contributed 2.69 percentage points to growth. For 2017, the first quarter was revised up to 1.8 percent, from 1.2.




So if we get 3 percent (or more) growth in 2018, President Trump can say he's delivered on a key campaign promise. They're boosting the economy, but Shepherdson says that just creates "a short-term sugar rush to growth and then probably some sort of hangover eventually down the line".

"We're going to go a lot higher", Trump said. But most economists took issue with that forecast, saying the pace of growth in the April-June quarter won't likely last in the months ahead. It plots year-over-year percentage changes in the quarterly figures of new orders at durable goods manufacturers in the United States.

There were some signs of softness, however.

Investment in homebuilding fell for a second straight quarter.

That weakness is a potential red flag, said Lindsey Piegza, chief economist at Stifel.

And Fuest says New Yorkers are already feeling the impact. But it's hard to get that message out because U.S. GDP growth hit 4.1 percent in the second quarter of 2018. According to the New York Times, the strong export number was "driven in part by a surge in soybean shipments tied to President Trump's trade policies". Yes, orders are growing, but the growth rate is slowing. But today's economic data is certainly good, and the president can take some of the credit.

Shepherdson added, "Looking ahead, the big stories for Q3 will be the slowdown in consumption - Q3 probably was boosted by the tax cuts, but the incremental cashflow effect is now zero - and the reversal of the Q2 inventory and trade swings".

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