Trump touts growth in USA economy

Trump touts growth in USA economy

Trump touts growth in USA economy

But on Friday, the government estimated that the economy did in fact expand at a 4.1 per cent annual pace in the second quarter, up from a 2.2 per cent rate in the first three months of the year.

Import duties are seen undercutting economic growth, with higher prices for goods discouraging consumer spending and businesses shelving investment plans.

Keep in mind that President Trump ran for the White House promising to boost the anemic economic growth of the Obama years. With the second quarter number of 4.1%, I continue to forecast 4% growth for the entire year is possible.

Growth in consumer spending, which accounts for more than two-thirds of US economic activity, is forecast accelerating from the first quarter's lethargic 0.9 percent rate, which was the slowest in almost five years. The rest of the year is likely to see solid, but slower growth of around 3 per cent. "While growth may be roaring, critics say the tax cuts may not filter down significantly to blue-collar Americans and are certain to widen economic inequality".

A revised estimate for the first quarter showed that in the first three months of the year growth was 2.2 per cent.

"We're on track to hit the highest annual average growth rate in over 13 years", Trump said in remarks at the White House.

But Trump did not urge caution on that front, instead pointing to a decrease in the United States trade deficit driven by those exports, calling it "one of the biggest wins" in the economic report.

The president also said more than 3.5 million Americans have been lifted off food stamps since he took office.

MARTIN: The president there touting the new GDP numbers - 4.1 percent growth in the second quarter.

The trade dispute with China, for example, prompted buyers to rush purchases of USA soybeans before Chinese retaliatory tariffs raised costs for that key market for America's largest agricultural export, according to Bankrate.com analyst Mark Hamrick.

Trump's tax cuts can stimulate faster growth by putting more money in people's pockets, but most economists expect the effect will be temporary, as those two trends act like gravity and pull the economy's longer-term growth lower. However, housing, which has struggled this year, shrank at a 1.1% rate after an even bigger 3.4% decline in the first quarter.

"Consumer spending bounced back and resumed its status as lead driver", wrote TD Economics' Admir Kolaj, with a 7.3 per cent lift in non-residential investment and net exports also providing a helping hand. Many economists believe that the high growth rate this quarter was indeed a blip.

Outside of the GDP numbers, the economic schedule will also bring investors the final reading on consumer sentiment in July from the University of MI. The revisions showed that growth in 2017 came in at 2.2 percent, slightly below the 2.3 percent previously reported. Growth has averaged just 2.2 percent since mid-2009 through the end of past year, the same as previously reported.

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