US GDP Highest Growth Rate in 4 Years


The US economy advanced an annualized 4.1 percent on quarter in the second quarter of 2018, well above an upwardly revised 2.2 percent expansion in the previous period and in line with market expectations. It is the strongest growth rate since the third quarter of 2014 amid higher consumer spending and soybean exports while business spending slowed, the advance estimate showed.

Personal consumption expenditure (PCE) contributed 2.69 percentage points to growth (0.36 percentage points in the first quarter) and rose 4 percent (0.5 percent in the first quarter). Spending of durable goods rebounded (9.3 percent compared to -2 percent) and rose faster for nondurable goods (4.2 percent compared to 0.1 percent) and services (3.1 percent compared to 1 percent).

Fixed investment added 0.94 percentage points to growth (1.34 percentage points in the first quarter) and increased 5.4 percent (8 percent in the first quarter). Investment rose less for equipment (3.9 percent compared to 8.5 percent), intellectual property products (8.2 percent compared to 14.1 percent) and structures (13.3 percent compared to 13.9 percent) and continued to fall for residential (-1.1 percent compared to a -3.4 percent).

The contribution from private inventories was negative (-1 percent), compared to +0.27 in the first quarter.

Meanwhile, exports jumped 9.3 percent (3.6 percent in the previous quarter) and imports rose at a much slower pace (0.5 percent compared to 3 percent). As a result, the impact from trade was 1.06 percent, much better than -0.02 percent in the first quarter and the highest contribution since the last three months of 2013.

Government spending and investment added 0.37 percentage points to growth, slightly higher than 0.27 percentage points in the first quarter. It increased 2.1 percent, above 1.5 percent in the previous quarter.

GDP growth figures for the previous years were revised due to comprehensive updates of the National Income and Product Accounts (NIPAs), which are carried out about every five years. The updates incorporate newly available and more comprehensive source data, as well as improved estimation methodologies. The GDP growth for 2017 was revised slightly lower to 2.2 percent from 2.3 percent.

For more information, visit Trading Economics by CLICKING HERE.

Featured Posts
Search By Tags
No tags yet.

© 2018 by Jennifer N. Coombs and GradMoney. Proudly created with Wix.com

 

All rights reserved. Use of this Site constitutes acceptance of our terms and conditions and privacy policy.

 

Restrictions: The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of GradMoney or Jennifer N. Coombs.

 

Disclaimer: All data and information provided on this site is strictly the author’s opinion and does not constitute any financial, legal or other type of advice. GradMoney, nor Jennifer N. Coombs, makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses or damages arising from its display or use. We also do not make any personal investments on behalf of readers, nor do we offer specific trading recommendations to readers. GradMoney is not a licensed broker dealer. All investment actions as a result of GradMoney’s articles are to be made at the discretion of the individual investor. All investments contain risks; GradMoney assumes no liability for any loss of income or principal.

 

All questions or inquiries my be directed to the attention of Jennifer N. Coombs.