GDP report proves Trump is turning the economy around

Trump Breaks Tradition on GDP Figures

Trump Breaks Tradition on GDP Figures

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

"As the trade deals come in one-by-one, we're going to go a lot higher", Trump predicted, seeing evidence that his economic policies are working. But Trump's rosy take on the long-term health of the USA economy also stood in contrast to assessments that the 4.1% growth last quarter was boosted by a spike in exports driven by trade war fears.

In the second quarter of the year, the US gross domestic product (GDP) almost doubled the first quarter's 2.2 percent as it rose to a whopping 4.1 percent - the highest rate since the third quarter in 2014, Daily Wire reported.

Mr Trump, who has repeatedly attacked the economic record of the preceding Obama administration, pledged during his 2016 campaign to double growth to 4% or better.

THE FACTS: Economists do expect a strong number for growth in the April-June quarter, but it is likely to be a temporary bounce. He predicts about 2.5 percent growth for 2019 - a bit better than the 2 percent of recent years.

A revised estimate for the first quarter showed that in the first three months of the year growth was 2.2 per cent. "We are now on track to hit an average GDP annual growth of over 3 percent and it could be substantially over 3 percent".

Trump boasted the biggest takeaway is that the USA deficit dropped by more than $50 billion.

"It's more of a sugar high story more than the really important question which is 'Can you get sustainable growth?'" she said. The last time the economy grew at a higher rate was 5.2 percent in the third quarter of 2014. Many think annual growth in the second half of this year will be 2.5 percent to 3 percent.

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"Real consumer spending rebounded, as expected, at a 4.0 percent pace, with gains in durable and nondurable goods as well as services".

The U.S. economy likely grew at its fastest pace in four years in the second quarter as consumers boosted spending and farmers rushed shipments of soybeans to China to beat retaliatory trade tariffs before they took effect in early July.

The Bureau of Economic Analysis (BEA) found that the national GDP increased by 4.1 percent during the second quarter of 2018. Government spending also posted a solid gain, rising at a 2.1 percent rate.

The growth rate was the strongest it has been since the third quarter of 2014.

PNC Bank is forecasting growth of 3.1% in 2018 - assuming that trade tensions dissipate.

The robust results put growth in the first half of the year at just over three per cent, matching a White House target and faster than the trend in previous years.

Trump's GDP number is a remarkable feat, since the United States is now progressing on a strong upward trajectory after seven interest rate hikes from the Fed. Annual growth has averaged just 2.2 percent since mid-2009 through the end of a year ago, the same as previously reported.

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