There have been concerns have surfaced that the economy could face recession in the next 12 months as several data points to weakness.
WASHINGTON-U.S. economic growth was stronger than initially thought during the second quarter, a sign of momentum headed into the second half of 2017. We expect Harvey to slow GDP growth by anywhere between 0.1 and 0.4 percentage points, with Q3 growth likely to come in in the 2.5% to 3.0% range given current tracking. The growth rate in the January-March quarter was a lacklustre 1.2 per cent. Economists had expected that second-quarter GDP growth would be raised to a 2.7 percent rate.
The 3 percent GDP growth was also revised up from the advance estimate, which showed economic growth increasing at 2.6 percent.
"I happen to be one that thinks we can go much higher than 3 per cent".
Mr Trump plans tax cuts, deregulation and infrastructure spending but the administration has yet to pass any economic legislation amid gridlock on Capitol Hill.
This will also be an indicator to see how the U.S. economy is fairing under the Trump administration which reportedly reducing regulations and set to propose tax cuts and infrastructure spending. CBO is forecasting average growth of just 1.9 per cent over the next decade.
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President Donald Trump has repeatedly cited as his goal raising United States economic growth at an annual rate of 3 percent after eight years in which former President Barack Obama could not reach this benchmark in any quarter.
Increases in consumer spending and business investment powered almost all of the revision issued on Wednesday. Spending on equipment jumped at a rate of 8.8 percent.
US President Donald Trump has said he wants to see the US economy increase by 3% for 2017. -6.8%) as did net exports which totaled -$613.4bn (prev.
For the entire year, Mark Zandi, chief economist at Moody's Analytics, is forecasting growth of 2.1 per cent.
If Trump's program remains deadlocked in Congress, Zandi said he will trim his GDP forecast for next year to 2.4 percent, still an improvement over the past three years, reflecting improved conditions around the world.
Zandi is forecasting that growth in 2018 will be an even stronger 2.8 percent.