Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. Second Quarter GDP Growth Accelerates to 4.1%

Economic IndicatorsJul 27, 2018 08:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. U.S. Q2 GDP grows 4.1% vs. in line with forecast

Investing.com - U.S. economic growth accelerated in the second quarter, matching forecasts and underlining the case for the Federal Reserve to proceed with plans to gradually increase interest rates.

In a report, the Bureau of Economic Analysis said that GDP registered a seasonally-adjusted annual rate of 4.1% growth in the three month period from April to June, nearly double the 2.2% expansion registered in the first quarter of 2018 and its fastest rate of growth since the third quarter of 2014.

The reading was in line with consensus.

The strong reading supports the upbeat assessment of the U.S economy that Fed Chairman Jerome Powell delivered to Congress in testimony last week, reaffirming expectations for two additional rate hikes this year.

“With a strong job market, inflation close to our objective, and the risks to the outlook roughly balanced, the FOMC believes that -- for now -- the best way forward is to keep gradually raising the federal funds rate,” Powell testified on July 17.

Some observers have expressed concerns that the strong rate of growth seen in the second quarter is unsustainable, especially given recent concerns over trade tensions between the U.S. and other parts of the world.

Powell admitted that “it is difficult to predict the ultimate outcome of current discussions over trade policy,” but emphasized that he felt the risk of the economy unexpectedly weakening was roughly balanced with the possibility of the economy growing faster than the Fed anticipated.

“The longer the trade uncertainty continues, the more it is likely to weigh on business sentiment, which could translate into lower capex spending and a slowdown in employment hiring,” ING economists noted ahead of the release.

“However, we have to remember there is a lot of stimulus in the system to provide a cushion -- the $1.5 trillion of tax cuts and the $300 billion of extra government spending this year -- while the tax hike effects of the tariffs enacted so far are only measured in the tens of billions,” they explained.

U.S. Second Quarter GDP Growth Accelerates to 4.1%
 

Related Articles

U.S. construction spending inches higher in June
U.S. construction spending inches higher in June By Reuters - Aug 02, 2021

WASHINGTON (Reuters) - U.S. construction spending rose by 0.1% in June, the Commerce Department said on Monday, as an increase in private projects was offset by a fall in public...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Peter Dee
Peter Dee Jul 27, 2018 3:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump , the most proAmerican president in half a century. Tax breaks to his Americans Tax tariffs to his antiAmericans.
kazem yazdani
kazem yazdani Jul 27, 2018 8:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I thought it has good effect on $ right side pairs
Gilbert Mmereki
Gilbert Mmereki Jul 27, 2018 8:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It had less impact but I managed to milk few pips
kazem yazdani
kazem yazdani Jul 27, 2018 8:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
why it had negative effect on usdjpy
Steve Cunningham
Steve Cunningham Jul 27, 2018 8:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It came in at 3.2 where do you come off that it's 4.1 ?
Holly Sorensen
Holly Sorensen Jul 27, 2018 8:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ur looking at the gdp price index #...instead, look at just the gdp # ...one is 3.2% and the main one everyone looks at is 4.1%
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email