USA economy accelerated during first full Trump quarter

Javier Stokes
July 29, 2017

Imports, which subtract from GDP, rose.

What's held this current economy from growing at a faster pace, he says, is a mix of things including "policy mistakes.political infighting in Washington.and business uncertainty".

While the 2.6 percent growth in the second quarter signals a rebound from the previous quarter, it still falls short of the 3 percent to 4 percent growth the Trump administration has been targeting.

The mining, oil and gas extraction sector accounted for almost 0.4 percentage point of May's overall economic growth.

Economic growth accelerated to an annual rate of 2.6% from April through June, the government said Friday.

Economists expect the Fed to announce a plan to start reducing its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities in September.

The dollar index against a basket of six major currencies was a shade lower at 93.755 after edging up 0.2 percent the previous day.

Spending on mining exploration, wells and shafts grew at a 116.7 percent rate, slowing from the first-quarter's robust 272.1 percent pace.

Trump says laws are stacked against the police
Gang-related violence on Long Island has led to congressional hearings, tweets from the White House and a visit from U.S. Suffolk County Police Department officials have said the gang killed 17 people since last January.

The latest growth figures suggest the Federal Reserve could still raise interest rates later this year, which would be the third increase in 2017.

Details within Friday's report were generally positive.

The revisions made minor changes to economic history, putting growth at 2.6 percent in 2014, up from 2.4 percent. The increase in business investment reflected increases in all three components: structures, equipment, and intellectual property products.

Personal consumption expenditure increased 2.8% for the quarter from an upwardly-revised 1.9% for the first quarter.

Businesses continued to carefully manage their inventories in the second quarter but spent more in some places.

Trade added 0.18 percentage point to growth, contributing to output for a second straight quarter. Higher vehicle sales at new and used auto dealers helped the retail sector grow by 0.9 percent.

The country's goods-producing industries led the growth, rising 1.6 per cent. Oil and gas extraction surged 7.6 per cent as activity at a facility in Alberta recovered after a fire and explosion in March that caused production difficulties, the statistics agency said.

Other reports by

Discuss This Article