Economy grows 4.1%, the fastest pace since 2014

Enlarge this image

The Commerce Department reports that US gross domestic product rose at an annual rate of 4.1 percent in the second quarter, up from 2.2 percent in the first three months of the year.

President Trump touted the "amazing" growth during remarks at the White House shortly after the report's release, cheering a shrinking trade deficit and claiming the country is on track to hit the highest annual growth rate in over 13 years.

This is the first time since the 2016 election that USA growth has hit the 4% target President Trump set himself during the campaign. The rest of the year is likely to see good, but with slower growth of around three per cent. Expectations were also high as President Donald Trump spoke about the number several times, including Thursday when he said he would be happy with a number with a 4 in front of it. The economy will be supported by a $1.5-trillion tax cut package in 2018 and increased government spending in the last quarter. Economic growth also increased by 2.9 percent in the fourth quarter, 3.2 percent during the third, and 3.1 percent during the second quarter of previous year.

Growth in consumer spending, which accounts for more than two-thirds of USA economic activity, increased at a 4.0 per cent rate in the second quarter, accelerating from the first quarter's stall-speed pace of 0.5 per cent.

In 2014, for example, the economy rose at an annual rate of 5.1% in the second quarter and by 4.9% in the third quarter. Many think annual growth in the second half of this year will be 2.5 percent to 3 percent.

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.

More news: FACEBOOK FAIL: Zuckerberg Loses $16 BILLION in FIVE MINUTES as Shares PLUNGE

In Q2 of 2018, consumer spending grew 4%, while nonresidential business investment jumped 7.3%, both also considered strong numbers.

Economists surveyed by The Wall Street Journal expected a 4.4 per cent growth rate. This would mark the fastest year-on-year growth rate since 2015.

Investment in housing, for example, declined by 1.1%, following a 3.4% fall in the first quarter.

The Fed is widely expected to leave its benchmark rate unchanged at its policy meeting next week and then increase it in September by a quarter percentage point to a range between 2 per cent and 2.25 per cent. But in 2020 - a presidential election year - Zandi is forecasting growth of just 0.9 percent, a pace so slow it will raise the threat of a recession.

"Just because Obama never broke 2% doesn't mean that someone with great policies can't". So what helped the economy in the first half of the year may well hurt it in the second half.

Growth in the first quarter was revised up slightly, from 2% to 2.2%, while the fourth quarter of 2017 dropped from 2.9% to 2.3%. Annual growth has averaged just 2.2 percent since mid-2009 through the end of a year ago, the same as previously reported.

Related News:



Most liked

38,000 under evacuation as California wildfire spreads
The Mendocino County Sheriff's Office ordered evacuations for people living in an area of Ukiah north of Highway 175. Doug Miles said as his crew used picks, shovels and rakes to open up piles that just days ago were family homes .

Demi Lovato Found In Her Bed Unconscious By Assistant
However, at around 11am in the morning, her assistant became concerned that she wasn't up and out of bed, so went to check on her. However, back in June she released a single called " Sober ", where she disclosed her relapse.

White House bars CNN correspondent from open press event
She said the Kremlin basically drove the entire process in Helsinki, and "we're seeing that again now". Trump suffered fierce criticism from Democrats and Republicans for his kid-glove treatment of Mr.

Meghan Markle’s sister Samantha signs up for Celebrity Big Brother
One thing's for sure if Samantha does enter the CBB house - Meghan won't be in the audience cheering her on. She lives in fear that he would transmit their private conversation to the press.

Countdown begins for the longest lunar eclipse of the century
NASA says that a lunar eclipse over 100 minutes will occur on Friday, making it the longest lunar eclipse of the century. In mainland France, the eclipse will be visible from 10 pm - 10.30 pm and it is expected to last until almost 12.30 am.

Is footballer Mesut Ozil German or Turkish?
Arsenal will also play Paris Saint-Germain on Saturday in the tournament. Emery said: 'It is a personal decision from Mesut and I respect it.

White House Postpones Second Putin Summit Until After 'Russia Witch Hunt'
In the declaration, Pompeo took Russian Federation to task for it actions in Ukraine, particularly the 2014 annexation of Crimea. Almost half of respondents - 47 percent - said Trump is guiding the nation's foreign policy toward negative consequences.

Conservatives Introduce Articles of Impeachment Against Rosenstein
If the proposal cleared the House, it would need a two-thirds vote in the Senate for Rosenstein to lose his job. Democrats have argued the focus on Rosenstein is an attempt to broadly undermine the Mueller investigation.

Lawmaker will resign after shouting slur on Sacha Baron Cohen's TV show
Nathan Deal said in a tweet: "There is no excuse for this type of behavior, ever, and I am saddened and disgusted by it". Mr Spencer lost the Republican primary in May, but he could have remained in public office through the November election.

‘No evidence to support’ ISIS claim of responsibility for Toronto attack
Jim Karygiannis told The Canadian Press that he knows the girl's family and that her death is a "devastation" to the community. In recent years, they say, investigators have noticed a stark shift in where guns used to commit crimes are coming from.

Pakistan blast kills at least 31 on election day, hospital says
A suicide bomber at an election rally in the Mastung district killed over 100 people earlier this month . Amid the ongoing elections in Pakistan, a blast has been reported in Quetta's Eastern Bypass.

President Trump Delays Putin Visit Until 2019 Due to Mueller Probe
President Donald Trump and Russia's President Vladimir Putin shake hands as they meet in Helsinki , Finland July 16, 2018. Chris Evans is pointing out the insanity in Trump's insinuation that Russian Federation would help Democrats win.

Riders hit by tear gas on Tour de France
It's bike racing", the Frenchman said. "I want to say that I'm happy to be here after that tough moment", Gilbert reflected. This stage was just 65km long, but featured three towering climbs between Bagneres-de-Luchon and Col de Portet.

Barcelona announce signing of Bordeaux winger Malcom
However, the Catalan giants have now swooped in and signed the Brazilian starlet for a fee in the region on £40m. The 21-year-old will sign with Barca for the next five seasons until the end of the 2022/23 season.

Jordan Doubles Down That Abuse Reports Are Attacks From Left
An Ohio State assistant coach has been charged with misdemeanor criminal trespass stemming from a dispute with his ex-wife. His family has said they were "shocked and saddened" to learn of the allegations.