Business

Economic Growth Reached 3 Percent in Second Quarter Rebound

Economic Growth Reached 3 Percent in Second Quarter Rebound”

Growth last quarter was the best since the first quarter of 2015 and followed a 1.2 percent pace in the January-March period.

In the first quarter, real GDP increased 1.2 percent.

The revised GDP figures come ahead of closely-watched official jobs statistics for August, due for release on Friday.

Even though the pace of growth is in line with the Trump administration's long-term goal of 3 percent, many analysts don't expect that rate to be maintained in the coming years or even in the coming months.

This came in much higher than the 185,000 forecast by analysts, and upped the ante on expectations for Friday's report, where forecasts now sit at 180,000 - which is close to the average monthly increase this year.

"The economy is stronger than you think", said Chris Rupkey, chief financial economist at Mitsubishi UFJ Financial Group in NY.

"Underlying domestic demand in the economy is consistent with near three percent growth but the supply-side of the economy is not capable of delivering such a pace of growth at this point", said John Ryding, chief economist at RDQ Economics in NY. Increased business spending also helped lift the latest estimate above the Commerce Department's initial reading of 2.6 percent for the quarter. However, private economists and the nonpartisan Congressional Budget Office believe that forecast is unrealistic. The economy grew 2.2 percent in the second quarter from one year earlier. Economists had forecast a slight increase to 2.7% from 2.6% on the back of stronger consumer spending. But the current devastation in Southeast Texas is expected to impact the third quarter economic growth, with economic activity significantly disrupted in the Houston, Victoria, and Corpus Christi metro areas.

President Donald Trump is relying on growth above 3% to generate enough revenue for the government to pay for tax cuts and more infrastructure spending.

United States growth figures are published at an annualised rate - showing how the economy would have performed if the improvement over one quarter were extended over a year.

But economists said it did not alter the picture significantly. "We had a major debt deleveraging after the housing collapse, then we had the European debt crisis and that was followed by a collapse in global energy and other commodity prices and then the Chinese economy stumbled", Zandi said. 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.



Like this

Latest


31 August 2017
US Destroyer Shoots Down Missile in Test Off Hawai'i
However, the August 30 test had been planned for a long time and before North Korea's latest missile launch. In June, the John Paul Jones failed to shoot down its target missile in a similar test off Hawaii.

31 August 2017
Harvey Tragedy: Missing family in van, swept away by floodwaters, found
Witnesses told the station that emergency crews in the area were not able to reach the van in time to rescue the six inside. Sammy was able to crawl through the driver's side window and grabbed a branch until he was rescued 45 minutes later.

30 August 2017
Olympic runner David Torrence found dead in Scottsdale pool
He signed a professional contract with Nike and went on to win multiple USA titles on the track and on the roads. Earlier this month, Torrence competed in the 800 and 1,500 for Peru at the world championships in London.

29 August 2017
Bay Area weather: Excessive-heat warning still in effect
The high today for Fallbrook is expected to hit 89 degrees, but by Tuesday, highs are predicted to hit triple digits. The warning is in effect for the valleys, mountains and both coastal and inland Orange counties.

27 August 2017
Blake Bortles Has Officially Been Demoted
I'm just trying to figure out who is going to be that guy in that position that can lead our team. He also made a deep throw to rookie Keelan Cole, who dropped the pass.

26 August 2017
Odell Beckham Jr. Could Miss Giants' Season Opener Vs. Cowboys
The Giants had Sterling Shepard , Roger Lewis and Travis Rudolph working primarily with the first team at practice. A source told the network it's "not out of the question he could miss a week or two of the regular season ".

26 August 2017
Taylor Swift Sorry Girl ... You're Gonna Miss Kim and Kanye at VMAs
And later: "The world moves on / Another day another drama, drama / But not for me, not for me / All I think about is karma". Some felt the song was a diss toward Kanye West , whom Swift has had issues with in the past.

25 August 2017
Walmart, Google team up on a collaborative shopping vision
Though not discussed in either company's blog post , the move is likely a response to Amazon voice shopping via Alexa devices. Google Express already offers products from a variety of stores, such as Target Corporation ( TGT - Free Report ).

24 August 2017
Taylor Swift Announces New Album, Release Date
She followed up her video of an unidentified creature's tail to reveal, as fans had expected, the mystery reptile was a snake. Perry is scheduled to perform "Swish Swish", her own diss track from earlier this year about Swift .

24 August 2017
Rocket League on Nintendo Switch Has Exclusive Content
The second exclusive Battle-Car is Samus' Gunship based on the protagonist of the beloved Metroid franchise. Holiday 2017 is what we have been given so we're likely looking at a November or December release.



Recommended