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Economy Rebounds to 2.6 Percent Growth in Second Quarter

Trump effect? Yeah, I think so. One of the most significant parts of this is that corporate investment is growing strongly. Business leaders get that the era of over-regulation is over and their taxes might be going down.

The second quarter is the first one that is more a Trump quarter than an Obama quarter, though of course we’ll be saddled with Obama’s lousy economic program for a long time. Two and half percent is not great, but it’s not bad, and it is a full point above average economic growth during the Obama administration and half a point above the “Obama recovery” era.

As excerpted from the Wall Street Journal:

Gross domestic product, a broad measure of goods and services produced in the U.S., rose at a 2.6% annual rate in the April to June period, the Commerce Department said Friday.

The second-quarter advance is a welcome rebound after a lackluster start to the year, when GDP grew at only 1.2% pace. It is less clear if stronger growth is a sign of momentum or simply repeating a familiar pattern of weak winters followed by a stronger spring and summer.

Details within Friday’s report were generally positive.

Both consumers and businesses helped propel growth in the second quarter.

Household outlays rose at a 2.8% pace, an improvement from the first quarter’s 1.9%. Consumers stepped up spending on both goods and services, possibly reflecting a broadly positive outlook since the election. The Conference Board’s index of consumer confidence in July rose to the second-highest level in 16 years.

Businesses also have been upbeat. A measure of corporate spending on projects, nonresidential fixed investment, climbed at a 5.2% pace. While that was down from the first quarter’s 7.2%, it is still one of the best readings since 2014.

6 Responses to Economy Rebounds to 2.6 Percent Growth in Second Quarter

  1. The one party system is alive and well in this country. They proved it last night. Traitor McCain took the hit in stopping any reform. The senate knew the vote would fail and in a conspiracy, left it to the terminally ill “crash McCain” to take the fall.

    • Keith – why no coverage of the 3 Awan brothers? 3 Muslims in charge of all kinds of sensitive Congress computers that were arrested this week.
      Most people do not know about the dismissal of the three Awan brothers, Abid, Imran, and Jamal Awan. On February 2nd, they were abruptly removed from their positions of managing information technology for the House Permanent Select Committee on Intelligence.
      They have been arrested, one while trying to flee the country.

  2. Recently the Panama Canal Authority reported that worldwide trade was down 9%. That could be one factor the 2.6% is not higher.