Wednesday, 29 August 2018

US economic growth revised up to 4.2% for the second quarter

The US economy grew at a faster pace than initially thought in the second quarter, according to revised figures.

The Commerce Department's second estimate for the April-June period put growth at an annualised 4.2%, slightly up from the previous figure of 4.1%.

It was the best quarterly figure for nearly four years and put the economy on track to hit the Trump government's goal of 3% annual growth.

The news helped send Wall Street share markets higher.

Many economists had forecast a downward revision of growth to about 4%.
On a non-annualised basis, the economy grew 1% during the quarter. During the same period, the UK economy grew 0.4%.

The upward revision reflected more business spending on software than previously estimated and less imports of oil. Growth was driven by one-off factors such as a $1.5 trillion tax cut package, which helped boost consumer spending.

The new estimate was based on a more complete set of data than previously available and will be revised again next month.

US defence spending rose 6% in the quarter, the biggest increase in nine years. But there was also downward revisions to consumer spending and construction.

BBC      News.

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