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Washington (AFP) – President Donald Trump on Friday hailed US economic growth as a "miracle," and said the quickest expansion was almost a vindication of its economic agenda.
With the size of the American economy now surpassing $ 20 trillion, GDP expanded by 4.1 percent in the April-June quarter, making the United States the fastest-growing of advanced countries, according to a government report.
"We're on track to hit the highest annual average growth rate over 13 years, "Trump said in remarks at the White House. "Everywhere we look, we're seeing the effects of the American economic miracle."
The Second Quarter Acceleration in the Aftermath of the Injection of Stimulus and Republican Tax Cuts.
But economists warned it could be a blip caused by heavy factors, including a one-off bounce produced by Trump's trade showdown with China.
The robust results put the growth in the first half of the year at just over three percent, matching the White House target and faster than the trend previous years.
Trump said the United States was "the economic envy of the world," and "As the trade deals come in one by one, we are going to go to a lot higher than these numbers and these are great numbers. "
His jubilation did not extend to Wall Street, where stocks closed down markedly as investors feared the economy and had disappointed earnings and trade war fears.
In the April-June period, consumer spending had its biggest bounce in nearly four y
Purchases of goods jumped 5.9 percent – with the largest contribution coming from booming auto sales – while services rose 3.1 percent.
But the report of the other countries, which is more important than any other source: strong exports which leapt 13.3 percent, driven higher by foreign sales of oil and soybeans said that increase in price by Chinese importers before Beijing's tariffs on US goods, which means it is likely to fall in the third quarter, dragging down the growth rate.
– Accelerating in a trade war? –
Trump goal but focused on the sudden drop in the US trade deficit and another triumph
"Perhaps one of the biggest wins in the report, it is indeed a big one, is that the $ 0.5 trillion, "Trump said."
The report showed imports only 0.5 percent, the smallest increase in two and a half
Also contributing to economic growth, spending by state and local governments rose 1.4 percent.
Trump had teased audiences at events in Iowa and Illinois as recently as Thursday.
The White House is counting on faster growth for the future. 1995-1920 Ian Shepherdson of Pantheon, Macroeconomics of the United States of America.
Ian Shepherdson of Pantheon Macroeconomics
"The message, then, that it's going to be bigger, and it's going to grow faster, for a while," he said. wrote in a research note.
Diane Swonk, chief economist at Grant Thornton, said the growth rate was likely to meet the White House's three-point target for the year and noted that a sudden drop in business inventories in the second quarter could point to a rebuild in the latter half of 2018.
"The question is, how much are the firms willing to stock up with the threat of a trade war?" she said in a research note.
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