In Q2 of 2018, consumer spending grew 4%, while nonresidential business investment jumped 7.3%, both also considered strong numbers.
The Trump Administration has said this is the beginning of a new era of stronger growth after the tax cuts and higher government spending, but the vast majority of independent economists see this quarter as a blip.
Most independent economists say this quarter's growth was juiced by stimulus from the trillion-dollar tax cut and a one-time rush by foreign companies to stock up on USA goods before Trump's trade war escalated and tariffs kicked in on many products.
The Democratic National Committee downplayed the positive report, saying in a statement, "Trump will try to boast about the economy, but the reality is that economic growth is not expected to continue at the same rate and workers have not benefited". "It'll be hard to repeat this performance on a sustained basis". That's the fastest pace since 2014, driven by consumers who began spending their tax cuts and exporters who rushed to get their products delivered ahead of retaliatory tariffs. Now, I don't want to say that too much and I didn't want to say too much during the campaign because I would have been criticized, people wouldn't have believed it... He also touted record-low unemployment numbers among minorities and fewer Americans on food stamps.
Friday's powerful gross domestic product report adds to the evidence that President Trump and his economic team have turned the world's largest economy from a stale and stagnant one to an empowering and uplifting machine.
Economists' forecasts for second-quarter GDP, the value of all goods and services produced in the nation, ranged from 3 percent to 5 percent.
Roseanne Barr Tells Fox's Hannity Racist Tweet Was A Big Misunderstanding
Let's really turn this into a teachable moment. "But I was allowed under my contract to have 24 hours to correct any mistake". Barr said her godson's father called her after the tweet and said, "I love you no matter what you do". "Because it wasn't.
With the Friday data, the Commerce Department also released comprehensive GDP revisions going back decades. When you get a 4%, above 4% pace, it's pretty wonderful and for the first time ever in the history of the country we have more jobs available than we have people. Many economists are doubtful that the economy can sustain a 4% growth rate, partly because of a yearslong slowdown in productivity.
GDP Goal Compared with a year earlier, second-quarter GDP rose 2.8 percent, just shy of the 3 percent mark, which was last reached in 2015.
The Fed last month estimated that the US economy would grow at 2.8 percent this year, still below the Trump administration's target of over 3 percent of annual growth rate. "A lot of economists think it is a one off and it will slow". When services are included, such as insurance, tourism, and engineering, the USA had a $2.8 billion surplus with Canada past year. That was a pickup from the first quarter's revised growth rate of 2.2 per cent, the New York Times reported.
Trade contributed 1.06 percentage points GDP growth in the second quarter after being neutral in the January-March period. So what helped the economy in the first half of the year may well hurt it in the second half.