US economy grows by 2.6% in Q2 2017, accelerating over the first three months when the annual growth rate was 1.4%. However, the pace between April and June is weaker than that promised by President Donald Trump. The authorities have set a long-term target of 4% GDP growth. Expectations for growth in the second quarter were 2.5%. The increase is on a quarterly basis, but multiplied by four, so is the annual rate of growth.
However, the data is a signal that the economy is performing well at this stage of the expansion that began eight years ago.
In the second quarter, the US economy grows benefits from a good performance and consumption and weaknesses are seen in the spending of US and local authorities. Consumer spending grew by 2.8%, while investment in non-residential fixed assets – by 5.2%. The trade contributes to GDP growth, with exports growing faster than imports. Stock availability weighs on the promotion.
Business investment in equipment grew by 8.2%, the sharpest pace of nearly two years. Less-than-expected housing investment in the second quarter declined at the fastest rate since 2010.
This is the first reading of the second quarter data, the second and third are expected in August and September respectively, when more data will be available.