The annualized rate of gains in gross domestic product was just shy of the 4.2 percent median forecast in a Bloomberg survey. But housing, which has struggled this year, shrank at a 1.1 percent annual rate after an even sharper 3.4 percent annual decline in the first quarter.
Government consumption rose at a 2.1 percent annual rate, including 3.4 percent growth in federal spending. Many analysts believe growth will weaken as the effects fade from the tax cuts and a government spending increase.
"The economy is now firing on all cylinders, and that growth is likely peaking", Bricklin Dwyer, senior USA economist at BNP Paribas, said in a research note. "It'll be hard to repeat this performance on a sustained basis". "It's not that there's a great new demand for soybeans", she said. "Next quarter, I think it's going to be outstanding".
That pace has picked up more recently after a long stretch of job gains that has driven unemployment to near record lows.
January-March quarter GDP growth was revised up to a 2.2 percent pace from the previously reported 2.0 percent rate to account for updated information and methodology improvements. "With imports increasing by only 0.5%, net external trade added 1.0 percentage point to overall GDP growth, while inventories ended up subtracting 1.0 percentage point", the economics analysis firm adds.
We're about to have a big national debate over economic policies-it's called the midterm elections.
Post — The Washington Post
For now, strong growth in the second quarter will keep the Federal Reserve on course to raise interest rates two more times this year.
CNN, the bias anti-Trump news network, struggled to credit the President, publishing one story as "the full story" on the economy's growth, claiming: "This is not sustainable", said KC Mathews, chief investment officer at Kansas City-based UMB Bank. Exports surged at a 9.3 percent annual rate in the second quarter, while imports grew at a scant 0.5 percent rate. Now, the growth rate is around seven percent. Ahead of the release, US President Donald Trump and members of his economic team had been promoting the notion that second-quarter growth would be robust.
Will the economy average 5% growth for the remainder of the year?At the same time, residential investment fell for the fourth time in five quarters. There was also a front-loading of exports of other goods in the second quarter. The result was boosted by a budget deal at the start of the year that added billions to defense and domestic spending.
Spending Power The data showed consumers' wallets grew at a slower pace.
"Real GDP 4.1 percent in the second quarter after 2.2 percent in the first quarter".
Price data in the report indicated that inflation was in line with the Fed's goal.
Compared to the second quarter of 2017, the economy grew 2.8 percent.
Teacher says Faisal Hussain told him: 'I want to kill someone'
When questioned by Fox News, the Royal Candadian Mounted police declined to say whether Hussain was on any kind of watch list. Hussain was not on any federal watchlists associated with the national security, Public Safety Minister Ralph Goodale said.