U.S. economy hits Trump's expansion target

GDP economy ship trade FBN
GDP: US Economic Growth in 2Q Revised Higher to Solid 3%
Author

31 August, 2017

On the stump for an overhaul of the nation's tax system, President Donald Trump on Wednesday said that cutting taxes would "bring back Main Street" and spur the US economy to a level of growth not seen since the Great Recession.

In its second of three estimates, the Commerce Department said Wednesday that gross domestic product rose at a 3% annual rate in the April-June period, an upward revision from the 2.6% reported last month and the strongest growth since the first quarter of 2015.

The revision lifted the annual GDP growth rate from the earlier 2.6% estimate, with growth accelerating from a slow start to the year.

The upgrade was also considerably higher than preliminary estimates of 2.6 per cent, and also represented a considerably faster expansion than economists had expected, at 2.7 per cent.

Inflation as measured by the Fed's preferred PCE index decelerated sharply to a 0.3% gain in the second quarter down from a 2.2% increase in the first quarter.

Real GDP in the second quarter of 2017 did show an increase from the previous year, when GDP expanded at 1.1 percent in the second quarter of 2016, according to the second estimate.

Economists say that the most-recent data suggest the U.S.is on track to maintain a 3%-plus clip in the third quarter.

More news: Trump says tax overhaul will 'bring back Main Street'

Hurricane Harvey's pummeling of major population and production centers in Texas and Louisiana will likely constrain growth in the third quarter. But net exports are expected to weigh more the growth, with refined product exports hard hit given the outages of Gulf Coast refineries and ports shuttered.

Mr Trump plans tax cuts, deregulation and infrastructure spending but the administration has yet to pass any economic legislation amid gridlock on Capitol Hill. Growth in the first quarter of the year was 1.2 percent.

Real gross domestic income (GDI) growth for the second quarter came in at 2.9%.

The higher figure in this revision stemmed largely from stronger consumer and business spending than estimated in the advance release. This is not far from the 2.1 percent average growth rate seen since the Great Recession, but I continue to believe that there is upward potential in the forecast, especially for 2018, if pro-growth policies are enacted.

Investment on nonresidential structures increased at a 6.2 percent pace, rather than the previously reported 4.9 percent rate.

Residential fixed investment and state and local government spending were both downwardly revised, offsetting a larger second quarter increase.


More news


  • Heat wave continues, prompting heat advisory

    Heat wave continues, prompting heat advisory

    Beach areas will see a heat advisory from Monday morning through Wednesday evening. "The old record was 115 set in 2011". On Tuesday, San Diego is forecasted to hit 91 degrees, which would break the previous August 29 record of 88.

    Sen. Jeff Flake downplays feud with President Trump

    Tom Coburn, R-Okla., sees Trump's criticism of Flake as "an enormous mistake". Flake has vocally opposed Trump throughout his campaign and presidency.
    United Kingdom  government prevaricates over ECJ jurisdiction

    United Kingdom government prevaricates over ECJ jurisdiction

    May, time and again, has said the European Court of Justice (ECJ ) will have no say over the United Kingdom after Brexit . And at the Tory conference last October, she spoke of a " Britain in which we pass our own laws and govern ourselves".
  • McGregor claims Mayweather 'out of shape'

    McGregor claims Mayweather 'out of shape'

    As far as McGregor is concerned, anyone betting against him should take their money onto the Strip and set it on fire. As aggressive in the ring as he is outside it, the 29-year-old Irishman will have youth and power on his side.
    Odell Beckham (ankle) in danger of missing Giants' season opener

    Odell Beckham (ankle) in danger of missing Giants' season opener

    If Beckham were to miss the first two weeks of the regular season, the Giants could find themselves in a bit of a predicament. The hit was scary and many wondered about the severity of the injury after Beckham ripped off his helmet following the play.
    Total buys Maersk Oil for $7.45 Billion

    Total buys Maersk Oil for $7.45 Billion

    Global firm Total is to buy the oil and gas division of the Danish group, AP Moller-Maersk in a deal worth $7.45 billion. The deal has been approved by both companies' boards but remains subject to shareholder votes and regulatory approvals.
  • US Shoots Down Medium-Range Ballistic Missile In Hawaii Test

    US Shoots Down Medium-Range Ballistic Missile In Hawaii Test

    The USS John Paul Jones , a guided-missile destroyer successfully launched an SM-6 interceptor missile to shoot down the target. Sailors aboard the destroyer USS John Paul Jones tracked it with radar and fired an interceptor missile to shoot it down.
    Com significantly edits Richard Justice column critical of Texas Rangers

    Com significantly edits Richard Justice column critical of Texas Rangers

    That game was moved from Houston's NRG Stadium to the Cowboys' AT&T Stadium, proving that these things can indeed be worked out. All ticket, concessions and parking sales from this three-game series are being donated to to Hurricane Harvey relief efforts.
    American woman quits her job straight after winning $1 billion Powerball prize

    American woman quits her job straight after winning $1 billion Powerball prize

    By Massacusetts law, Lord would be entitled to half the winnings if he had married Wanczyk-a hefty sum of $168 million. The reason the prize is so large is because there hasn't been a Powerball jackpot victor since June 10.
  • No Progress in Latest Round of Talks Between Kushner and PA's Abbas

    No Progress in Latest Round of Talks Between Kushner and PA's Abbas

    Kushner heard out the Palestinian leader's demands and postponed any responses for the next meeting they have. Also, the team will examine economic steps ahead of a potential peace deal.
    Hunt for Thailand's ex-PM Yingluck Shinawatra after court no-show

    Hunt for Thailand's ex-PM Yingluck Shinawatra after court no-show

    A minister in her government was jailed hours later for 42 years in a separate trial for corruption linked to the policy. He is believed to use a Montenegrin passport to travel between homes in Dubai, London, Hong Kong and Singapore.
    Don't toss those eclipse glasses: Denver museum offers discount for donation

    Don't toss those eclipse glasses: Denver museum offers discount for donation

    If you plan on disposing them, do so properly by tossing the solar eclipse glasses into a trash can or recycle bin. Eclipse glasses for Monday's solar eclipse proved to be a highly sought after item.