The US economy GDP growth in the second quarter was revised upwards, accounting for the highest rate of more than two years. There are also indications that inertia remains at the beginning of the third quarter. The US GDP is expanding with an annual growth rate of 3% between April and June, according to the second reading of the Ministry of Trade data. The initial calculations showed a value of 2.6%. The economists forecast an increase of up to 2.7%.
Economic growth in the first half was also revised upwards from 1.9% to 2.1%.
The US President Donald Trump has set an ambitious 3% growth target this year, which should be achieved with a series of tax cuts, deregulation and infrastructure spending. So far, however, the administration has failed to pass key economic legislation, but has yet to submit detailed plans for tax reform and infrastructure. Moreover, there is little chance that Congress will be able to debate and adopt tax legislation before the end of the year.
The consumer spending, which generates more than two-thirds of GDP, rises by 3.3%, which is the fastest pace in a year. The first reading showed growth of 2.8%.
The business equipment costs jumped by 8.8%, the fastest pace since nearly two years.
Trade adds 0.2 percentage points to growth, not 0.18 points as previously estimated.