US Economy Expanded at 2.6% Rate in Q-2

Reuters

That was an acceleration from the 1.9 percent pace in the first quarter.

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. Most promisingly, equipment spending soared in the latest data to its fastest pace since the third quarter of 2015, up 8.2 percent, with 4.9 percent growth in structures spending.

In a scheduled release the Bureau of Economic Analysis (BEA), the USA agency that compiles gross domestic product data, said last quarter's growth rate came in at 1.2%, revised down from 1.2%.

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

The gross domestic product data, published Friday, says consumer and business spending helped boost growth.

The economy picked up in the second quarter after a lackluster start to the year as solid consumer spending more than offset weak business stockpiling and residential investment.

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

That puts the first half average growth at 1.9%, still under 2%, and no great shakes, points out Thomas Byrne of Wealth Strategies & Management.

Andrew Hunter, US economist at Capital Economics, said: "Looking ahead, the strengthening labor market should continue to support real consumption growth, while the business surveys remain at a high level and suggest that investment will continue to recover".

The Canadian dollar added to gains against the greenback immediately after the report, while traders increased their bets of another interest rate hike from the Bank of Canada, which earlier this month raised rates for the first time in almost seven years.

Yet the International Monetary Fund said that its forecast for global growth remained unchanged, given strengthening economies in France, Germany, Italy, Spain, Japan and Canada. That would follow two straight quarters when investment in homebuilding supported GDP growth. Nondurable goods spending was also stronger, up 3.8 percent in the second quarter.

Growth was held back by the housing market, though. "The issue of "residual seasonality" is likely to persist through the upcoming revision".

Related:

  • Foxconn to build plant in Wisconsin, invest $10B

    Foxconn to build plant in Wisconsin, invest $10B

    The Trump administration said there is also the potential for future facilities in other states like Illinois, Indiana, and MI . In fact, he has even spoken specifically about getting Apple to manufacture its products in the United States.
    Los Angeles Times: US should stop the games with Iran nuclear agreement

    Los Angeles Times: US should stop the games with Iran nuclear agreement

    Iranian Deputy Foreign Minister Abbas Araqchi said on Wednesday that Tehran will respond "firmly" to the U.S. President Donald Trump to become law. "Iran will definitely respond to the USA hostile move", he noted.
    Secretary of State Tillerson says he is 'not going anywhere'

    Secretary of State Tillerson says he is 'not going anywhere'

    Tillerson has reportedly had an icy relationship with Trump and the White House since he became secretary of state. . Pressed about Mr Tillerson's light schedule in recent days, Ms Nauert said he was "just taking a little time off".
  • 3-year-old twins drown in backyard pool

    3-year-old twins drown in backyard pool

    The house changed hands late a year ago to a corporate owner, and officials said some work was done on the pool area this spring. She asked her five-year-old son where they were before she looked out the window and saw Nicholas floating in the murky pool.
    Trump Administration Says Gays Aren't Protected By Federal Civil Rights Act

    Trump Administration Says Gays Aren't Protected By Federal Civil Rights Act

    The plaintiff in that case had successfully argued that a school had violated Title VII when it denied her employment. Understandably, it sparked outrage among LGBT organizations and advocates .
    Release Date Out of 'Wonder Woman 2' in 13 December 2019

    Release Date Out of 'Wonder Woman 2' in 13 December 2019

    It's notable too that she broke records with Wonder Woman , as it was the highest-grossing live-action film directed by a woman. Jenkins' " Wonder Woman " is still chugging along at the box office, with over $389.7 million from North American theaters.
  • Channels activated to trace 39 Indians in Iraq: minister

    Channels activated to trace 39 Indians in Iraq: minister

    Sushma Swaraj was allowed to speak after Speaker Sumitra Mahajan's repeated requests to maintain the order of the House. Masih claimed all the 39 men, barring him, were executed by the terrorists shortly after they were captured.
    The hilarious Chrissy Teigen tweet that made Donald Trump block her

    The hilarious Chrissy Teigen tweet that made Donald Trump block her

    Teigen was proud to announce Monday morning that Trump finally got exhausted of seeing her trolling techniques after nine years. Teigen has never been one to back down from adversity, so somehow, someway, she will probably survive this.
    Pope prays for ill baby Charlie Gard and parents

    Pope prays for ill baby Charlie Gard and parents

    Judge Nicholas Francis said Tuesday that the hearing would resume Wednesday and that he expects to issue a ruling later that day. Very few people who develop the condition in infancy survive to their teenage years, and there is now no known treatment for it.
  • HTC's new standalone Vive headset is exactly what VR needs

    HTC's new standalone Vive headset is exactly what VR needs

    The bad news is that The Vive Standalone has only been announced as exclusive to the Chinese market later this year. What we do know is that it will not require a PC or a phone.
    Saakashvili sends tearful message to Ukrainian president after losing citizenship

    Saakashvili sends tearful message to Ukrainian president after losing citizenship

    In November 2016, Saakashvili quit his post and formed an opposition party and was seen heavily criticizing Ukrainian authorities. The move was widely seen as political retribution against Saakashvili, who was getting increasingly popular.
    Javier Hernandez could prove a vital asset to West Ham

    Javier Hernandez could prove a vital asset to West Ham

    West Ham are now on a pre-season tour of Germany where Hernandez is expected to join the rest of the squad this week. And that optimism is a far cry from this time last season, when most of their signings sank without trace.

Comments

Latest news

Trump won't let Assad get away with ''horrible'' actions
Ending the operation has been seen as a net gain for the Kremlin by several officials privy to the decision. "Putin won in Syria". Trump chose to nix the aid nearly a month ago after meeting CIA Director Mike Pompeo and National Security Adviser H.R.

Amazon Founder Jeff Bezos Beats Bill Gates
At the start of 2017, Bezos was ranked fourth in the list behind Bill Gates, Warren Buffett, and Amancio Ortega. That would put him past Gates, expecting the valuations of their non-stock property haven't changed.

Venezuela's Maduro lashes out at 'insolent' USA sanctions
The existing Supreme Court has consistently backed Maduro and shot down all measures by the opposition-led National Assembly. The sanctions were announced as a two-day national strike began in the country, organized by opposition groups.

'Apple CEO promised to build three big plants in US'
Trump claims that Apple CEO Tim Cook called him and committed to construct " three big plants , attractive plants" domestically. Apple, on its part, had been making disclosures to highlight how it had been contributing to job creation in the US.

Gunaratne in doubt for rest of India Test series
India began their dream run in Tests under Virat Kohli by winning the Test series against Sri Lanka two years ago. He had scored at an awe- inspiring strike rate of 91.81 until then, and accelerated once he crossed this landmark.

United Kingdom to ban petrol and diesel cars from 2040 - here's why
The UK will ban the sale of all petrol and diesel cars and vans from 2040 onwards as part of a move to tackle air pollution. But despite a draft air quality plan being released by the Government in May, there was no mention of the scheme.

USB 3.2 Specification Promises "Double Speed" Using The Same Type-C Connector
The only small inconvenience is that to use these new speeds you'll need brand new devices at each end of the cable. In many implementations, this connector, or port, is also used to deliver Thunderbolt 3 capabilities.

Chinese foreign minister accuses India of sparking border stand-off
He reiterated that the India's trespassing "seriously damaged China's sovereignty and violated the basic norms of global law". The Tibetan Buddhist spiritual leader has kept his headquarters in northern India since fleeing Chinese-ruled Tibet.

Bayern Beat Chelsea On Morata's Debut
They scored three good goals but that is something we need to work on at the training ground, to make sure we correct that. He added: "After being champions two years ago, we had a bad season".

UK GDP grows 0.3% in second quarter, first half lacklustre
Meanwhile inflation began to recede, which if it continues in the coming months could end the squeeze on real incomes. Construction output also paid back much of the 1.1 percent gain seen in the first quarter, declining some 0.9 percent.

Nokia's First Android Phone launching in August
According to the recent leaked price of Nokia 8 also leaked and it was with a price tag of Euro 589 (approximately Rs.43,400). Its standout features include a smart audio amplifier, dual speakers powered by Dolby and a Qualcomm Snapdragon chipset.

Trump pressures Republicans to repeal, warns 'Obamacare is death'
Days after the surgery, the senator disclosed that he had a brain tumor and had been diagnosed with an aggressive form of cancer. The Senate is expected to take a procedural vote Tuesday, opening debate on legislation to repeal and replace Obamacare .

United Kingdom courts must keep jurisdiction over European Union citizens' rights in Britain: Davis
The British Poultry Council slammed the notion of importing chlorine-washed chickens as part of a "makeweight in trade negotiations with the U.S".

After Moto Z Force, Motorola Set To Launch Motorola Z2 Force
Moto Z2 Force has been one of the most sough smartphone since last month when Moto Z2 Play was launched kicked off the Z2 series. For a limited time, buyers will get a free Insta-Share Projector Moto Mod , a $299 value, via mail.

Frank Sinatra's Wife, Barbara Sinatra, Passes Away at 90
She is survived by her son Robert Oliver Marx, daughter-in-law Hillary Roberts, and granddaughter Carina Blakeley Marx. She and the "Come Fly With Me" singer remained married until Frank Sinatra's death in 1998.

Other news