Page 25 - ARUBA TODAY

BUSINESS Monday 31 July 2017
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US economy expanded at stronger 2.6 percent rate in Q2

advance in the coming percent rate, up from a
years, hitting a sustained 1.9 percent growth rate in
pace of 3 percent annually the first quarter. Consumer
by 2021. The Congressional spending accounts for 70
Budget Office and most percent of economic ac-
private economists are less tivity. The economy also
optimistic, believing growth benefited far more mod-
rates have the potential of est inventory reductions,
improving only slightly from which was a big drag on
the lackluster rates seen in first quarter growth.
the current recovery, the In the other major catego-
weakest in the post-World ries, business investment
War II period. in plant and equipment
Also on Friday, the depart- grew at a 5.2 percent rate.
ment’s Bureau of Econom- But housing construction
ic Analysis issued an an- tumbled at a 6.8 percent
nual benchmark revision of rate, a payback after an
its data going back three 11.1 percent surge in the
years. The revision slightly winter due to warmer-than-
boosted growth over the normal weather. Econo-
past three years, enough mists believe housing will
to lift the average growth resume growing in coming
in this recovery, now the quarters. A shrinking trade
Construction workers build a residential complex in Nashville, Tenn. On Friday, July 28, 2017, the third longest in U.S. history, deficit added a mod-
Commerce Department issued an economic report on how the U.S. economy is performing. to annual gains of 2.2 per- est 0.2 percentage point
(AP Photo/Mark Humphrey) cent, up from the previous to growth as exports rose
estimate of 2.1 percent. while imports, which sub-
By MARTIN CRUTSINGER growth, but firmer business Commerce,” Trump told The 2.6 percent growth in tract from the GDP, grew
AP Economics Writer investment is also a plus,” the audience on Long the second quarter was at a slower pace.
WASHINGTON (AP) — The said Mark Zandi, chief Island. “We’ve been the fastest pace since the The government sector
U.S. economy revved up economist at Moody’s An- screwed so badly on trade economy expanded at a grew at a 0.7 percent rate,
this spring after a weak alytics. “Weaker housing deals. I want people that 2.8 percent rate in the third driven entirely by a big
start to the year, fueled by construction was the only made a lot of money now quarter of last year. jump in defense spending.
a surge in consumer spend- significant drag on growth to make a lot of money for Much of the strength in the Domestic federal programs
ing. But the growth spurt in the quarter.” our country.” April-June period came and state and local gov-
still fell short of the optimis- Trump campaigned on a Trump in May put forward from consumer spend- ernments all showed small
tic goals President Donald pledge to boost growth to a budget for next year that ing, which grew at a 2.8 declines.q
Trump hopes to achieve rates of 4 percent or better. projects growth to steadily
through tax cuts and regu- So far, his economic pro-
latory relief. gram has not advanced in
The Commerce Depart- Congress. But on Friday he
ment said Friday that still hailed the latest accel-
growth in the gross domes- eration in growth.
tic product, the economy’s “GDP is up double from
total output of goods and what it was in the first quar-
services, expanded at a 2.6 ter — 2.6 percent,” Trump
percent annual rate in the told a crowd in New York.
April-June quarter. That’s “We’re doing well. We’re
more than double the re- doing really well. And we
vised 1.2 percent pace in took off all those restric-
the first quarter. tions.”
The improvement was Trump told the crowd that
powered in large part by he was proud that he had
robust consumer appetite appointed wealthy people
for items such as clothing to his Cabinet including
and furniture. Commerce Secretary Wil-
The 2.6 percent GDP gain bur Ross and Treasury Sec-
came in close to econo- retary Steven Mnuchin.
mists’ expectations. “I want a rich guy at the
“Consumers continue head of Treasury. I want
to drive the economy’s a rich guy at the head of