USA second-quarter growth revised to 3 percent in momentum boost

USA second-quarter growth revised to 3 percent in momentum boost

USA second-quarter growth revised to 3 percent in momentum boost

As a result, the PCE index decelerated to a 1.6% annual pace in the quarter, down from a 2% rate in the first quarter. Economists had expected second-quarter growth to be revised up to 2.7%.

The second estimate, which incorporates more data, saw strong growth in personal consumption - which can indicate a general sense of financial security among the population - and nonresidential fixed investment, which can indicate bullishness on the business side. The downgrade reflects a 1.7 per cent fall in spending by state and local governments. However, the current devastation in Southeast Texas is likely to hit growth in the third quarter, with economic activity substantially disrupted in the Houston, Victoria, and Corpus Christi metro areas. ADP said 178,000 jobs were created in July. Some credit President Barack Obama for handing off a solid economy to Trump; others point to the surge in business and consumer confidence after Trump was elected as an indication that the new president caused a shift in momentum. USA stocks rose. The nonpartisan Congressional Budget Office sees growth averaging 1.9 percent over the next decade, a forecast much closer to estimates made by private economists. Much of the strength came from a sharp upward revision in spending on autos, which the government initially estimated as declining in the spring. The saving rate slipped to 3.7 percent from 3.9 percent in the first quarter. The economy will also be boosted by higher spending on the military and infrastructure projects, he said.

Real gross domestic income (GDI) growth for the second quarter came in at 2.9%.

The revised figure is still well below President Trump's target of 4 percent, but it is the economy's best showing in two years. The second-quarter saving rate was previously reported at 3.8 percent.

This is the fastest quarterly growth rate in more than two years.

Tillerson: Trump 'Speaks For Himself'
His slowness to hire key staff, micro-managerial tendencies, and willingness to accede to White House-proposed cuts have left the department feeling rudderless, according to many accounts .

Businesses helped to carry the economy in the second quarter, in part buoyed by a rebound in corporate profits.

The upgrade was also considerably higher than preliminary estimates of 2.6 per cent, and also represented a considerably faster expansion than economists had expected, at 2.7 per cent. -6.8%) as did net exports which totaled -$613.4bn (prev.

That is different from the United Kingdom, which publishes quarter-on-quarter growth figures.

Consumer spending powered the second-quarter surge, rising a revised 3.3% compared to the government's original estimate of a 1.9% gain.

Related news