The U. S. gross domestic product grew by a strong 4.1 percent annual rate in the second quarter of 2018, a Commerce Department report said Friday.
July 27 (UPI) — The U. S. gross domestic product grew by a strong 4.1 percent annual rate in the second quarter of 2018, a Commerce Department report said Friday.
While the quarterly report is preliminary and based on data certain to be revised, the data show the U. S. economy grew at the fastest quarterly pace in four years. A rebound in consumer spending and the stockpiling of exports, notably soybeans in anticipation of a worsening trade dispute with China, were contributors to the increase.
Some economists had projected second quarter growth of 4.2 percent. The preliminary figure is a dramatic rise over 2.2 percent growth in the first quarter.
The government’s quarterly GDP estimate is a broad measure of goods and services produced in the United States and is a primary gauge of overall economic health.
A strong growth estimate was expected after President Donald Trump hinted of a positive report Thursday.
« Somebody actually predicted today 5.3 [percent growth], » Trump told supporters during a visit to Illinois Thursday. « If it has a 4 in front of it, we’re happy. If it has like a 3 — but it’s a 3.8,3.9,3.7 — we’re OK. »
« These are unthinkable numbers, » he added. « If I would have used these numbers during the campaign, the [news media] back there would’ve said he’s exaggerating. »
White House economic adviser Larry Kudlow also indicated a strong report was coming.
« You’re going to get a very good economic growth number tomorrow. Big, » he said.
The anticipated news comes after Trump announced on Wednesday the United States and European Union will work together to avert tariffs and a potential trade war. It also spurred a rise in pre-trading stock prices.
Dow Jones Industrial Average futures rose 22 points before trading Friday, suggesting a 43 point rise when trading begins. The optimism came after President Donald Trump indicated Thursday the Commerce Department’s second-quarter GDP report Friday will be positive.
Nasdaq and Standard & Poor’s 500 readings were also upbeat, CNBC reported .
