Page 129 - 27-29 di juli

BUSINESS Monday 29 July 2019
A25

US economy slowed to 2.1% growth rate in second quarter

By MARTIN CRUTSINGER gain. But economists had
Associated Press cautioned that this strength
WASHINGTON (AP) — The was likely to be temporary.
U.S. economy slowed For the second half of this
sharply in the April-June year, economists say they
quarter even as consumers think GDP will grow at a
stepped up their spending. modest annual rate of 2%
The gross domestic prod- or slightly lower, leading to
uct, the economy's total growth for the full year of
output of goods and ser- around 2.5%.
vices, grew at a 2.1% an- That would be a disappoint-
nual rate last quarter, down ment to the Trump admin-
from a 3.1% gain in the first istration which is forecast-
quarter, the Commerce ing that Trump's economic
Department estimated Fri- policies of tax cuts, deregu-
day. lation and tougher trade
But consumer spending, enforcement will lift the
which drives about 70% U.S. economy to sustained
of economic activity, ac- gains in coming years of
celerated to a sizzling 4.3% 3% or better. Trump often
growth rate after a lack- cites the economy's perfor-
luster 1.1% annual gain in mance at his campaign ral-
the January-March quar- In this Wednesday, July 24, 2019 photo, the container ship Seaboard Atlantic is shown docked at lies, saying his policies have
ter, boosted in particular PortMiami in Miami. lifted the economy out of a
by auto sales. The resur- Associated Press decade-long slowdown he
gent strength in household blames on the wronghead-
spending was offset by a Bank to signal that more the Fed through a series of Trump said a strong dollar ed policies pursued by the
widening of the trade defi- economic stimulus could tweets to start cutting rates. "is a beautiful thing in a way Obama administration.
cit and slower business in- be coming soon. Economists expect a quar- but it makes it very hard to While economists see the
ventory rebuilding. The global weakness is a ter-point reduction in the compete." tax cut Trump pushed
Economists also noted that key reason why the Federal federal funds rate, which Kudlow told reporters ear- through Congress in late
business capital investment Reserve is widely expected influences many consumer lier Friday that the adminis- 2017 as a key factor boost-
fell in the April-June quar- to cut interest rates next and business loan rates, tration had a White House ing growth last year, they
ter for the first time in three week for the first time in when the central bank meeting last week and expect the impact of those
years. That weakness likely more than a decade and meets next week. ruled out intervening in cur- cuts to fade this year. Most
reflects some reluctance to signal that it may further Responding to Friday's rency markets to weaken think it would leave the
by businesses to commit to ease credit in the months GDP report, Trump tweet- the dollar. But in his com- economy growing close to
projects because of uncer- ahead. ed, "Q2 Up 2.1%. Not bad ments with reporters, Trump the annual average of 2.3%
tainty surrounding President Sung Won Sohn, a business considering we have the seemed to still leave the that has prevailed since this
Donald Trump's trade war economist at Loyola Mary- very heavy weight of the door open to such a move expansion began in June
with China. mount University in Califor- Federal Reserve anchor which could violate com- 2009. The recovery this
Indeed, most analysts think nia, noted the disparity be- wrapped around our neck. mitments the United States month became the longest
the U.S. economy could tween solid U.S. consumer Almost no inflation. USA is has made with other ma- in U.S. history, one month
slow through the rest of spending and tepid corpo- set to Zoom!" jor economies not to ma- longer than the 10-year ex-
the year, reflecting global rate investment. Later, speaking to report- nipulate currencies to gain pansion of the 1990s. Still,
weakness and the trade "Consumers and businesses ers in the Oval Office about trade advantages. the 2.3% average annual
war between the world's are going their separate the Fed, Trump said, "They On Friday, besides issuing growth rate is the weak-
two largest economies. ways," Sohn said. "If the acted too soon and too vi- its first of three estimates est for any recovery in the
This week, the International pattern continues, it is not a olently" in raising rates nine of growth in the April-June post-World War II period.q
Monetary Fund downgrad- good sign for the economy times since late 2015. Trump quarter, the government
ed its outlook for the world because there would be also complained about reported that by one mea-
economy because of the fewer jobs. For this reason, the Fed's efforts to lower its sure, the economy grew
trade conflict. China's own the Federal Reserve will go bond holdings, saying that more slowly in 2018 than it
growth sank last quarter to ahead with an interest-rate was driving up rates as well. had previously estimated.
its lowest level in at least cut next week." Trump said without the As part of its annual revi-
26 years after Trump raised Larry Kudlow, head of the Fed's tightening moves, sions to GDP, the govern-
his tariffs on Chinese im- president's National Eco- growth would have been ment downgraded its esti-
ports to pressure Beijing nomic Council, blamed 4.5% in the second quar- mate for 2018 growth from
over the tactics it's using last year's four rate increas- ter instead of 2.1% and the 3% to 2.5%.
to challenge U.S. techno- es by the Fed, rather than Dow Jones Industrial Aver- Trump had frequently
logical dominance. Econo- Trump's trade policies, for age, which along with oth- boasted of the now-down-
mists say China's slowdown last quarter's drop in busi- er stock gauges has been graded 3% fourth-quarter-
might extend into next ness investment. setting record highs, would over-fourth-quarter GDP
year, which would have "I don't think the trade fac- be 5,000 to 10,000 points figure for 2018 as evidence
global repercussions be- tor is nearly as important higher. that his policies have invig-
cause many countries feed as the monetary factor," "I am not a fan," Trump said orated the economy.
raw materials to Chinese Kudlow said in a CNBC in- of Fed Chairman Jerome For the January-March
factories. terview Friday. "I am hop- Powell. quarter, a narrower trade
Europe, too, is weakening ing that monetary policy Asked if he felt the dollar deficit and a surge in busi-
in the face of global trade makes the shift that inves- was too high against other ness restocking had con-
tensions — a concern that tors are expecting." currencies, making it hard- tributed 1.3 percentage
led the European Central Trump has been pressuring er to export U.S. products, points to the 3.1% annual