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Trump touts economy: 'These numbers are very, very sustainable'

31 July 2018

President Trump touted the "GREAT GDP numbers" in the Commerce Department's report Friday morning - and predicted that "we're going to go a lot higher than these numbers" in the months to come.

Josh Bivens, an analyst for the Economic Policy Institute, said the second-quarter growth level has been reached or exceeded four other times since the recovery began in 2009.

The Commerce Department said Friday that the economy accelerated to a 4.1 per cent pace of growth in the second quarter, the fastest since 2014.

However, private forecasters cautioned that the April-June pace is unsustainable because it stems from temporary factors.

Friday's report also showed that personal consumption in the second quarter grew at an annualized rate of 4%, a major jump from the 0.5% pace of consumption growth seen to start the year.

The Democratic National Committee downplayed the positive report, saying in a statement, "Trump will try to boast about the economy, but the reality is that economic growth is not expected to continue at the same rate and workers have not benefited".

"Over the last 12 months, the economy has grown by 2.8 percent, which is a bit better than it has done recently, but is in no way the strongest growth during this expansion", said Paul Ashworth, chief US economist at Capital Economics. "We are now on track to hit an average GDP annual growth of over 3 percent and it could be substantially over 3 percent".

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It will also associate with third party e-commerce companies to help leverage its popularity in apparel and merchandise. The move will also "enable accessible price point for premium small displacement market entry", Harley-Davidson added.

The President also pointed out a decrease in trade deficit with a number of countries and vowed economic growth for the US will continue as a number of agreements are renegotiated.

"It's more of a sugar high story more than the really important question which is 'Can you get sustainable growth?'" she said.

A measure of domestic demand surged at a 4.3% rate in the second quarter. And in 2015, full-year economic growth almost reached the 3 percent level being targeted by the Trump administration this year when it hit 2.9 percent.

Government spending increased at a 2.1 per cent rate, adding 0.37 percentage point to growth.

Canada, Mexico and other countries have announced retaliatory tariffs against USA products in response to the US tariffs on steel and aluminum imports.

The GDP estimate is the first of three for the quarter, with the other releases scheduled for August and September when more data become available.

Fund also observes that real disposable income went up by 3 percent this year following last year's gain of 2.3 percent. Consumer spending rose by 4 percent in the second quarter. "Now you have to redo your forecast and figure out what to do with the rest of the year", said Ward McCarthy, chief financial economist at Jefferies. The economy expanded 2.9 per cent in 2015, though it slowed the following year. "And the year-over-year growth rate is just above the long term trend of 1.8 percent". Growth has averaged just 2.2 percent since mid-2009 through the end of previous year, the same as previously reported.

Trump touts economy: 'These numbers are very, very sustainable'