US Economy Grew At 2.6 Percent In Second Quarter

It is also still short of the 3 percent growth targeted by the president's team to achieve its economic objectives.

"The acceleration in real GDP (gross domestic product) growth in the second quarter reflected a smaller decrease in private inventory investment, an acceleration in PCE (personal consumption expenditures), and an upturn in federal government spending", the Commerce Department said.

The 2.6% growth in Q-2 was the fastest pace since the economy expanded at a 2.8% rate in Q-3 of previous year.

Alongside the second-quarter GDP report, the government will publish revisions to data going back to 2014, including the first-quarter GDP estimate. This is not far from the 2.1 percent average growth rate seen since the Great Recession, but I continue to believe that there is upward potential in the forecast, especially for 2018, if pro-growth policies are enacted.


In recent years, the US economy has often started off slowly, improved in the middle of the year, only to sag again toward the end.

Friday's GDP data is the first of three measurements the Commerce Department will take of the economy in the second quarter.

Consumer spending grew 2.8% in the second quarter, up from 1.2% the first three months of the year as Americans benefited from solid job and income growth as well as cheap gasoline.

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


Economists surveyed by The Wall Street Journal had expected an increase of 2.7%.

The economy grew at 2.1% in the fourth quarter of 2016.

Nonresidential fixed investment, a measure of corporate spending on structures and equipment, climbed at a pace of 5.2 percent in the second quarter, down from a 7.2 percent growth rate in the previous quarter. These were offset by negative contributions from private residential fixed investment, private inventory investment and state and local government spending.

The GDP deflator came in at 1.0% from 2.0% previously and below expectations of a 1.3% increase.


The dollar fell against a basket of currencies after the release of the data, while prices for USA government bonds rose.


Popular
  • Starts throwing, but on PUP list

    Starts throwing, but on PUP list

    "Andrew's got to work on getting his throwing motion back, all his strength back, " general manager Chris Ballard said Monday. Per Bowen, Luck has been throwing a football since last week. "He'll be ready to go and perform at a good level".
    Errant US bombing kills 12 Afghan security forces

    Errant US bombing kills 12 Afghan security forces

    Safi further told The Associated Press that the dead were police officers who were operating with the army in the area. In the statement, the US offered its condolences to the families of the security forces who were killed.
    Mathematics Genius Maryam Mirzakhani Has Died At 40

    Mathematics Genius Maryam Mirzakhani Has Died At 40

    In 2008, Mirzakhani joined the faculty of Stanford University, where she served as a professor of mathematics until her death. She would then head to the United States for her graduate studies, completing her PhD at Harvard University in 2004.
  • Morata says was destined to play under Conte at Chelsea

    Morata says was destined to play under Conte at Chelsea

    Morata also displayed a bit of his passing and dribbling skills, linking up quite well with the other Chelsea attackers. Conte added that he wasn't too concerned with his side's performance at this stage of their pre-season preparations.
    Panthers release concussed tackle Oher after failed physical

    Panthers release concussed tackle Oher after failed physical

    He started 16 games during the regular season and three postseason games in his first year with the franchise. In May, Oher was accused of assaulting an Uber driver in Nashville, Tennessee, according to Nashville Police.
    Scripps Networks Interactive, Inc. (SNI) has a Market value of 9.98 Billion

    Scripps Networks Interactive, Inc. (SNI) has a Market value of 9.98 Billion

    Should a deal go ahead this year, Discovery would nearly certainly emerge with a lion's share of the stock as the larger company. Scripps William H. sold 166,708 shares worth $13.08M. $734,946 worth of Scripps Networks Interactive, Inc . (NASDAQ: SNI ).
  • Saakashvili Lashes Out, Vows To Seek Return To Ukraine

    Saakashvili Lashes Out, Vows To Seek Return To Ukraine

    In 2015, Saakashvili was stripped of his Georgian citizenship due to receiving a Ukrainian passport. Now there is an attempt under way to force me to become a refugee.
    Danilo explains why he rejected Chelsea for Manchester City

    Danilo explains why he rejected Chelsea for Manchester City

    David de Gea is one of Manchester United's strongest players but has had his head turned by Real Madrid for a few years. Ander Herrera has insisted that Manchester United would not win the title next season if they sold David de Gea .
    President Trump says ISIS 'falling fast' ahead of meeting at Pentagon

    President Trump says ISIS 'falling fast' ahead of meeting at Pentagon

    Those hopes were bolstered when the administration announced decisions on troop numbers would be the exclusive domain of Mr. Pakistan has been reimbursed $550 million of the $ 900 million the country was authorised to receive in fiscal year 2016.
  • Speaker Vos Statement on Foxconn Announcement

    Speaker Vos Statement on Foxconn Announcement

    Foxconn's announcement comes only days after Donald Trump said Apple is going to build three factories in the United States. He continued, "In other words if I didn't get elected he definitely would not be spending $10 billion dollars".
    The Vatican Turned Off Its Fountains So Rome Can Save Water

    The Vatican Turned Off Its Fountains So Rome Can Save Water

    A severe drought across Italy has made preserving water a top priority this summer. Around 100 fountains in total have been switched off, according to Reuters .
    Ford Adds 2018 F-150 Police Responder Pickup to Truck Lineup

    Ford Adds 2018 F-150 Police Responder Pickup to Truck Lineup

    The truck has a versatile 5-1/2′ box for cargo and a Class IV trailer hitch is standard, with a Trailer Tow Package available. The back seats and floor are covered in heavy-duty vinyl so that nasty messes can be cleaned up easily.

CONNECT