US Economic Growth Fastest Since 2014

[PunkTheFunk 125,733]

The US economy grew at its fastest pace in nearly four years in the second quarter, expanding at an annualised rate of 4.1%, official figures show.

The gains were driven by strong consumer spending, business investment and a surge in exports as firms rushed to beat new trade tariffs. US President Donald Trump described the acceleration as "amazing", claiming it as proof his policies are working.

But many analysts cautioned that growth could cool in coming months. "In one line: Looks great; won't last," wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics.

What boosted growth?

Friday's report from the Commerce Department showed consumer spending rose by 4% in the second quarter, up from the 0.5% rate seen in the previous three months. Exports also grew by more than 9%, the fastest rate since the fourth quarter of 2013. Economists say that figure, which contributed more than 1% to the GDP gains, was inflated in part by farmers seeking to get ahead of new trade tariffs on items such as soybeans. In July, the US and China imposed tariffs on $34bn of the other country's goods. Canada, Mexico and the European Union also imposed new duties in recent weeks on some US exports in retaliation for US tariffs on steel and aluminium.

Is this "amazing"?

The US economy expanded at an average annual growth rate of 2.2% between 2012 and 2017.

That pace has picked up more recently after a long stretch of job gains that has driven unemployment to near record lows. President Trump said the White House had to "do a lot of things" to get the economy going again. He pointed to new tax cuts, de-regulation, increased government spending and the continuing trade negotiations.

"We've accomplished an economic turnaround of historic proportions," he said.

The US economy expanded at an average annual growth rate of 2.2% between 2012 and 2017. That pace has picked up more recently after a long stretch of job gains that has driven unemployment to near record lows. President Trump said the White House had to "do a lot of things" to get the economy going again.

He pointed to new tax cuts, de-regulation, increased government spending and the continuing trade negotiations. "We've accomplished an economic turnaround of historic proportions," he said.

https://www.bbc.com/news/business-44979607

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What do you think girls? Did Trump win after all?

[TheJoanneJoker 3,866]

I'm fine with any President as long as people's lives improve.

[rumours 45,521]

This is not at all surprising given many of the policies he put in place. Short term growth was going to happen. 

The main question now is whether that growth is sustainable for future quarters. If it does, Democrats may be in trouble come 2018 midterms and in 2020. 

[ShockPop 7,747]

Driven by panic buying before it goes tits up. Enjoy your recession, girls.

[imnotyourbabe10 6,120]

Lmao...I bet another recession is around the corner.

can't wait to see how this turns out.gif

 

Anti-capitalist, here so whatever. 

And FDT as usual

[Guillaume Hamon 7,046]

Trump did many pro-business things so it's not a surprise to see the growth going stronger now... I'm curious to know if all the cuts made by his administration will make up for the expensive companies tax cuts he made or if he will just let the debt explose...

Now let's remember that a part of the de-regulations he described as a reason of his success concerns environment laws so everybody will pay for it in a way someday, even if it just make companies life easier therefore bringing growth at the moment Let's also check the cuts he made for education... That will have a "cost" too when these kids will be adults.

He seems to be only about Growth&Jobs results and not giving a damn about his future record for societal questions.

[Woolfsmck 2,763]

Failed to mention that wages stagnated or regressed compaired to to the cost of living.

[Diamond Monster 299]

Yeah, “economic growth”, but only for the rich. Working and middle class people like me never see any change, all that money is pocketed by the big corporations that trump supports.

[Economy 53,084]

9 hours ago, Rumours1977 said:

This is not at all surprising given many of the policies he put in place. Short term growth was going to happen. 

The main question now is whether that growth is sustainable for future quarters. If it does, Democrats may be in trouble come 2018 midterms and in 2020. 

This! Tax cuts and spending increases are bound to give a sugar high and increase economic growth in short term

 

Also the tax rate wasn't just cut but changed. Companies can write off more expenses now earlier in the lifetime of a new project and reduce taxes. That may bring forward expansion project dates now but reduce investment later

 

But this is costing a lot. Deficits should not be rising during good economic times now projected to surpass 5% of GDP annually which would rise even more should the economy go into a recession

 

That's not sustainable in the slightest.

[Economy 53,084]

6 hours ago, Woolfsmck said:

Failed to mention that wages stagnated or regressed compaired to to the cost of living.

I red an article showing that bottom 60% of population is piling on more debt right now and reducing Savings.

 

A typical side effect of late stage economic expansions when people get over confident and spend beyond their means but also a symptom of stagnant middle class and low middle class wages

 

However none of the imbalances are severe yet. Unless something like a severe oil spike or severe escalation of trade war occurs etc I don't think the next recession will occur just yet

 

I'd say maybe 2020 or maybe even beyond

[Woolfsmck 2,763]

Yeah, I think most of the "economic growth" is low level part time jobs.

[Emvee 8,858]

All this means is that the next recession is going to hit just in time for a Democrat to take office and get all the blame for it. 

[Woolfsmck 2,763]

16 hours ago, Postboy said:

All this means is that the next recession is going to hit just in time for a Democrat to take office and get all the blame for it. 

Every problem is the opposing sides fault

[Emvee 8,858]

5 hours ago, Woolfsmck said:

Every problem is the opposing sides fault

Which major US economic downturn has been attributed to left-wing policies? I’m not at all talking about neoliberal policies either. 

[Woolfsmck 2,763]

15 hours ago, Postboy said:

Which major US economic downturn has been attributed to left-wing policies? I’m not at all talking about neoliberal policies either. 

Clinton's fair housing act created a false real estate boom. .when he credit market failed , we got a huge recession in 08... Left winger pundits blame the right for lack of regulations on a flawed policy..