Trump hails USA economic growth spurt, promises more ahead

Output expanded 3.1pc in the first half of 2018 putting the economy on track to achieve the Trump administration’s target of 3pc annual growth

If the 4.1 percent economic growth is to be sustained, let's hope he's right.

Mr Trump was responding to new growth numbers announced today that show the United States economy surged in the April-June quarter to an annual growth rate of 4.1 percent - the fastest pace since 2014.

"We're going to get a lot higher than these numbers and these are great numbers", Trump said, flanked by his economic team. Few economists outside the administration agree with this claim.

The Bureau of Economic Analysis announced Friday that the nation's gross domestic product grew at a 4.1 percent annual rate on an inflation-adjusted basis. The second-quarter increase in GDP was in line with economists' expectations. And, ironically, Trump's various protectionist measures spurred a boom for USA exporters - because foreign buyers were eager to stock up on American goods before their governments slapped retaliatory tariffs on such products.

More importantly, benchmark revisions to the history of the GDP data show that household income was far stronger than previously thought.

Mr. Trump, who reached a truce this week with the European Union in a trade war, also noted that the US trade deficit fell by $52 billion in the second quarter. Economists polled by Bloomberg expected the report to show the economy grew at an annualized rate of 4.2% in the second three months of the year.

The negative contributors to the economic growth were private inventory investment and residential fixed investment.

CBS CEO Les Moonves Sexual Misconduct Allegation 'Taken Seriously' Says Network
The Big Brother host did not address the controversy on Friday's episode of The Talk as it was pre-taped. Shari has made no secret of her desire to join Viacom and CBS since taking over for her ailing father.

Also nudging GDP growth upward were stimulus effects from the tax cuts that went into effect at the beginning of the year and a big increase in government spending.

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

Trump said the pace of growth was "very sustainable" and could create as many as 12 million jobs over the next decade. Nonetheless, President Trump can say he's put the economy on a much more solid footing not just for now, but with lower tax rates and less government regulation, for the longer term too.

Pay was growing even faster in the late 1960s, when the jobless rate remained below 4 percent for almost four years.

The GDP tracks the total dollar value of all goods and services produced over a specific time period and is commonly used to determine the economic performance of a country or region. That's above the 130 percent that the market has traditionally traded around and what many think indicates stocks are fully valued. The impact on nominal export growth was drastic - it hit 10% annualized growth in August, but fell to near-zero in December.

All this said, the Commerce Department's report offers some unambiguously good news. Exports rose at a 9.3 percent rate in the second quarter, while imports grew at a tiny 0.5 percent rate.

Diane Swonk, chief economist at Grant Thornton, said the growth rate was likely to meet the White House's three per cent target for the year and noted that a sudden drop in business inventories in the second quarter could point to a rebuild in the latter half of 2018.

Related News:



Most liked

AC Milan vs Man Utd 1-1 (Pens 8-9) Highlights 2018
Accessing the WatchESPN live stream requires login credentials from a cable or satellite TV provider subscription, however. Liverpool and Manchester United are level at half-time during their International Champions Cup fixture.

Thomas extends his Tour lead, Martin up to eighth
Froome was knocked off his bike after stage 17 of the Tour de France on Wednesday. The Welshman said after: "The last time I cried was when I got married".

Work continues to identify the dead after wildfires kill dozens in Greece
About 500 homes were destroyed, and the fire brigade said there were closed-up homes that had not yet been checked. Recriminations have mounted about how authorities handled the deadly fire and why no evacuation was ordered.

Cohen: Trump approved 2016 Trump Tower meeting with Russians
Reporter Emily Jane Fox says that contrary to some speculation, sources close to Cohen say that his team did not leak the story. Cohen, who worked as the top lawyer at the Trump Organization for several years, often referred to himself as Trump's "fixer".

Hamilton reprimanded but keeps German GP win
Nonetheless, the race stewards made a decision to issue Hamilton his first reprimand which means that his final race time remained unchanged.

11 babies die after pregnant women given Viagra
Viagra, which is the better known name of the generic drug sildenafil , is more commonly used for men with erectile problems. It can mean babies are born prematurely, with a very low birth weight and poor chances of survival.

Mars close approach: Get a look at the red planet
The Mars opposition falls just before the longest total lunar eclipse of the century , which will last 1 hour and 43 minutes. NASA plans to release on Friday what scientists say will be stunning new images of Mars taken by the Hubble Space Telescope.

Facebook Suspends InfoWars’ Alex Jones For 30 Days For Offensive Videos
Facebook has taken action against Jones, suspending him for violating a numbers of its policies against hate speech and bullying. The suspension from Facebook came just days after YouTube removed four videos from Jones's account.

Egyptian zoo ‘paints donkey’ to look like zebra
In another case of animal trickery, a zoo in China annoyed visitors by trying to pass off a hairy dog as a lion in 2013. This particular "zebra" for example, lacked the distinctive mane and long ears associated with the African animal.

Donald Trump threatens North Atlantic Treaty Organisation ally Turkey with sanctions over detained USA pastor
US Secretary of State Mike Pompeo said in May: "Any time sanctions are put in place, countries have to give up economic activity". Mr Pompeo, who is also an evangelical, hosted the summit - the first of its kind to be held at the state department.

Putin’s Not So Sure He Wants to Meet With Trump in Washington
And he called for Russian Federation to respect principles it claims to respect and "end its occupation of Crimea". "Yes, I did. Because he talked about bringing the US-Russia relationship back to normal".

Pakistanis head to the polls despite interparty, militant violence
Election officials reminded candidates their results will be nullified if the female voter turnout didn't reach 10 per cent. Voting began at 8 am (local time), during which most of Pakistan's almost 106 million people came out to cast their votes.

Thunderstorm warning but temperatures still set to soar to 36C
The Met Office is warning of the possibility of torrential downpours, strong winds and thunderstorms for Derbyshire on Friday. The longest dry spell this year is Brooms Barn, near Bury St Edmunds, where there hasn't been a drop of rain for 45 days.

USDA commits $12B for farmers, ranchers affected by tariffs
He's felt the impact of the trade wars directly as milk prices plummeted again this year following a long downward slide. They also agreed to increase trade in services and agriculture, including greater U.S. soy bean exports to the EU.

Trump Wants To Revoke Security Clearances Of Ex-Officials Who've Criticized Him
He added: " Public officials should not use their security clearances to leverage speaking fees or network talking head fees ". Rand Paul, who wrote on Twitter that he planned to ask about revoking Brennan's clearance when he met with Trump on Monday.