President Trump Delivers a Stronger Economy as Promised

President Trump Delivers a Stronger Economy as Promised

President Trump Delivers a Stronger Economy as Promised

Also contributing to economic growth, spending by state and local governments rose 1.4 per cent.

President Trump has been steadfastly claiming that his policies will catapult the USA economy into a much higher rate of growth - 4 percent over the next few years.

Trump said that the USA was still the "economic envy of the entire world", and added that future growth was "going to be outstanding" as a result of several trade deals his administration is now renegotiating.

But most economists and financial analysts disagree.

Weak home construction and increased imports, which subtract from economic growth, took it down a notch. USA stock index futures also pared gains.

The U.S. economy grew at its fastest pace in almost 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. In case you don't know what that means, this is it: The economy, with all the estimates and guesstimates put into Friday's figure, actually grew by 1.025 percent in the second quarter.

More generally, economists question whether the animal spirits awakened by the US fiscal stimulus can continue to boost growth.

Friday's report also showed that personal consumption in the second quarter grew at an annualized rate of 4%, a major jump from the 0.5% pace of consumption growth seen to start the year. Spending on structures advanced 13.3 percent following a 13.9 percent gain in the prior period, while equipment investment cooled to 3.9 percent and intellectual property spending slowed to 8.2 percent. At the same time, residential investment fell for the fourth time in five quarters. He said the economy is on track to reach an annual growth rate of more than 3 percent.

This threat of an escalating trade war has led many companies to increase their levels of trade before any tariffs hit, causing the temporary boost in exports being celebrated by Trump. That's above the 130 percent that the market has traditionally traded around and what many think indicates stocks are fully valued.

All this said, the Commerce Department's report offers some unambiguously good news. Consumer spending in the second quarter, adjusted for prices, surged at a 4.0-percent annualized pace, well above expectations of a 3-percent rise.

While GDP growth may not be a good measure of workers' well-being, it is a good indication that the wealthiest Americans are seeing their incomes climb, given that most of America's economic growth in recent years-particularly after the 2008 Wall Street crash-has been hoarded by the top one percent.

The Commander-in-Chief touted the booming economy on "The Sean Hannity Show" Friday; adding the mainstream media is largely ignoring new data that shows a record-setting $52 billion decrease in America's trade deficit. But the weight of the current evidence suggests that it will not.

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