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Economic Growth Reached 3 Percent in Second Quarter Rebound

31 August, 2017, 01:17 | Author: Paula Vaughn
  • US Dollar May Bounce on Q2 GDP Revision ADP Jobs Data

Growth in the second quarter of the year reached an annual rate of three per cent, according to the US Bureau of Economic Analysis (BEA), marking an even faster acceleration from a weak first quarter, in which the economy only grew by 1.2 per cent annualised. For the first quarter of 2017, the percentage change in real GDI was revised from 2.6% to 2.7%.

Treasury Secretary Steven Mnuchin has said it will take up to two years for the economy to sustain this pace, while some economists have said the target is too high. The economy grew 2.2 percent in the second quarter from one year earlier.

Nonfarm inventories rose by 0.15%, compared with a drop of 1.59% in the prior quarter, while exports rose by just 0.45%, compared with an increase of 0.85% in the first quarter. We expect Harvey to slow GDP growth by anywhere between 0.1 and 0.4 percentage points, with Q3 growth likely to come in in the 2.5% to 3.0% range given current tracking.

During the 2016 election, then-presidential candidate Trump pledged to bring manufacturing sector jobs back to the United States and focus on improving the country's economy.

Somewhat stronger consumer spending and business investment were behind the upward revision.

The Commerce Department issues its second look at the performance of the overall economy for the April-June quarter.

Many economists had been forecasting growth in the current July-September quarter would be around 3%.

North Korea's Ri Sol Ju gave birth to third child
In fact, Kim and Ri's marriage wasn't even confirmed until 2012, at which point they'd been married for roughly three years. She visited South Korea in 2005 as a cheerleader for her country's squad in the Asian Athletics Championships.

The 3% growth rate in the second quarter marked a rebound from 1.2% growth in the first three months of the year. Economists saw a limited impact on growth from Hurricane Harvey, which devastated parts of Texas. "All of those things weighed on US growth".

Mr Trump plans tax cuts, deregulation and infrastructure spending but the administration has yet to pass any economic legislation amid gridlock on Capitol Hill.

"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", John Ryding, chief economist at RDQ Economics in NY, told CNBC.

Nonetheless, the faster expansion rate in the second quarter could relieve the pressure on the Federal Reserve, which has been divided over the course of monetary policy in recent months.

Increases in personal consumption expenditures (PCE) and in nonresidential fixed investment were larger than previously estimated.

Imports, which are a subtraction in the calculation of GDP, increased.

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