The news for the US economy is, as growth has moved up in the second quarter of the year.
The gross domestic product increased at a 3.0% annual rate last quarter, the Ministry of Commerce’s financial analysis office said in its preliminary assessment of GDP in the second quarter on Wednesday. The economy shrunk at a rate of 0.5% in January-March, the first GDP decline for three years.
Subsidized imports represented most of the growth, while consumer spending increased restraints, Reuters notes.
However, many economists argue that President Donald Trump’s protective trade policy, which includes sweeping duties on imports, has made it difficult for the economy to find a steady pace.
The announcements on duties increased imports in the first quarter, resulting in a record deficit in the trade balance that burdened the economy. This trend was reversed in the second quarter.
Reuters survey among economists predicted that GDP would recover at an annual rate of 2.4%. However, the investigation was completed before Tuesday’s data showing that the deficit of the goods of goods was shrunk to the smallest of almost two years in June.
This prompted economists to upgrade their estimates of GDP growth, up to 3.3%.
Analysts expected that the US Federal Bank would maintain its reference rate in the range of 4.25% -4.50% after the end of a two-day policy meeting on Wednesday, resisting Trump’s pressure to reduce borrowing costs.
Source: Skai
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