US economy grows at fastest pace in four years
July 27, 2018
US President Donald Trump welcomed economic growth of 4.1 percent in the second quarter, calling it an "amazing rate," and pledged the numbers were sustainable.
The figures released on Friday by the US Department of Commerce showed the economy grew at the fastest pace since 2014 during from April to June.
Analysts said consumer spending and exporters helped boost the numbers, as Americans spent their Trump-signed tax cuts, and manufacturers who rushed to get their products delivered ahead of retaliatory tariffs.
A revised estimate for the first quarter showed that in the first three months of the year growth was 2.2 per cent.
Future 'outstanding'
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Trump said that the US was still the "economic envy of the entire world," and added that future growth was "going to be outstanding" as a result of several trade deals his administration is currently renegotiating.
The US president's approval ratings are likely to benefit from the strong economic performance, at least in the short term — after all, he has attacked the economic record of the Obama administration, and pledged during the 2016 election campaign to double growth to 4 percent or better.
However, there is concern the US economy is overheating and the growth is aided by stimulus, including massive tax cuts, which will soon run out.
Moreover, concerns over a trade war likely helped improve commerce figures last quarter, as people tried to get deals done ahead of time. This too will likely not be sustained.
How the trade conflicts with Europe, Canada, Mexico and China will affect the economy in the coming period will also be closely watched.
mm (AP, dpa)