Share This On Social

The United States economy has grown steadily by 4.2% in the second quarter, which is the best result of nearly four years. The economists, however, sees a signal for slowing growth in the current three months, partly because of trade barriers.

The Department of Trade reported that Gross Domestic Product (GDP) – unifying production and services in the country – has remained unchanged from the preliminary estimate last month. The steady increase in the GDP has often been quoted by the US President Donald Trump as evidence that his economy program is working.

However, much of this growth reflects a temporary increase in exports of soybeans and other US goods prior to the entry into force of the import tariffs by China.

In the first quarter, the US economy growth was 2.2%.

The GDP growth in the second quarter is backed by solid consumer spending, which rose by 3.8% – the fastest pace since the end of last year – and large companies’ investments. The increase in federal spending was 3.7%. The exports grew by 9.3% and imports declined by 0.6%, which is more than previously announced, and this has helped to boost growth.

For the third quarter, economists expect growth of over 3%.

The Fed yesterday raised its key interest rates for the third time this year, reviewing its growth forecast for the whole year to 3.1% from the previously announced 2.8%.