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

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

Import duties are seen undercutting economic growth, with higher prices for goods discouraging consumer spending and businesses shelving investment plans. "This president's economic policies are succeeding, and trade is a big part of that".

Friday's report from the Commerce Department showed consumer spending rose by 4% in the second quarter, up from the 0.5% rate seen in the previous three months. So, in the next few months, the second-quarter GDP figures could turn out to be much different than they look now.

But that boost in exports will now reverse because the tariffs have been imposed, Shepherdson says. Exports were higher than expected because farmers are trying to ship products to other countries before the tariff riff is a full-scale war. Unemployment among Blacks, Hispanics and women is now at record lows.

In other words, foreign companies appear to be importing as many goods as they can from the US before their own governments retaliate against Trump's tariffs with duties of their own. That revision showed that growth in 2017 came in at 2.2 percent, slightly lower than the 2.3 percent previously reported. Exports surged at a 9.3 percent annual rate in the second quarter, while imports grew at a scant 0.5 percent rate.

"This isn't a one time shot", he said on Friday.

President Donald Trump said his tax cuts and trade policies helped growth and would continue to help the economy expand.

Following February job numbers, I noted that the continued strong job market would contribute to economic growth. Economists also expect slower growth in 2019 and 2020.

The US trade deficit, Trump noted, has dropped by more than $50 billion.

Trump, European Union leaders pull back from trade war
He tweeted that China was specifically targeting USA farmers with retaliatory tariffs because "they know I love & respect" them. Trump backed off from his threat to slap hefty tariffs on automotive imports as part of the agreement.

According to analysts from Wells Fargo, the 2.2% growth rate year-over-year is enough to sustain higher interest rate from the Federal Reserve.

There were some signs of softness, however. But housing, which has struggled this year, shrank at a 1.1 percent annual rate after an even sharper 3.4 percent annual decline in the first quarter.

That weakness is a potential red flag, said Lindsey Piegza, chief economist at Stifel. At its core, it says that consumer demand is taking a massive hit.

Trump called the narrowing of the trade deficit "one of the biggest wins in the report".

"What we're seeing in the Trump economy is wages going up for the first time in a long time", Peter Navarro, the top trade adviser to the president, told NPR Friday before the GDP report was released.

The weak capex data signals that corporate executives aren't "overly enthusiastic about their growth prospects, regardless of what any sentiment survey may indicate", Tematica said. But today's economic data is certainly good, and the president can take some of the credit.

Last December in this space, I argued that, combined with the removal of burdensome regulations, the tax cuts would stimulate economic growth. Perversely, so did the threat of various trade rows. That's because, ahead of retaliatory tariffs by China on US agricultural products, China went on a soybean buying spree. We were just talking about, you know, soybean sales.

We want to hear your stories about how the economy is doing where you live.

Related Articles

  • Key players in US case versus ex-Trump campaign chairman Paul Manafort

    Key players in US case versus ex-Trump campaign chairman Paul Manafort

    The charges largely predate the five months Mr Manafort worked on the Trump team in 2016, some of them as campaign chairman. The prospect of Manafort being found guilty on all charges could mean he spends the rest of his life in prison.
    Rudy Giuliani blasts Michael Cohen, calls former Trump fixer a 'pathological liar'

    Rudy Giuliani blasts Michael Cohen, calls former Trump fixer a 'pathological liar'

    A source close to the Trump Organization described Weisselberg to CNN as the number two in command at the Trump Organization. Trump denied knowledge of the meeting in a tweet Friday morning. "You know, I'm going to do that right away".
    NY  state revokes approval of Charter-Time Warner…

    NY state revokes approval of Charter-Time Warner…

    The company must provide uninterrupted service while the state transitions to a new service provider, the commission said. NY has given Charter Communications 60 days to stop operating within the state's borders.
  • Colombian Drug Traffickers Put A $70000 Bounty On A Police Dog

    Colombian Drug Traffickers Put A $70000 Bounty On A Police Dog

    A few months ago, the tenacious hound sniffed out 77 kilos of cocaine placed deep inside an industrial machine. She is so darn good at uncovering tons of cocaine that the powerful Urabeños mafia wants her dead.
    Yankees Trade for J.A. Happ

    Yankees Trade for J.A. Happ

    Happ signed a three-year contract with the Blue Jays on November 30, 2015, and will be a free agent at the end of the 2018 season. There, the 23 year old batted just.230, but displayed some power, hitting 13 homers while driving in 32 runs in 54 games.
    New report says it's still unknown why Flight MH370 disappeared

    New report says it's still unknown why Flight MH370 disappeared

    The final voice communication from the cockpit came less than an hour after takeoff: "Good night, Malaysian three seven zero". Malaysian Prime Minister Mahathir Mohamed says he would consider resuming the search if new clues came to light.
  • At Least 74 People Killed In Forest Fires Near Athens

    At Least 74 People Killed In Forest Fires Near Athens

    Wildfires are not uncommon in Greece, and a relatively dry winter helped create current tinder-box conditions. Hundreds of firefighters are battling the blazes and the authorities are seeking worldwide assistance.
    Samsung starts teasing Galaxy Note9 ahead of August 9 event

    Samsung starts teasing Galaxy Note9 ahead of August 9 event

    This time around, we see Samsung spewing video teasers alongside, adding fuel to the flames of hype. "A lot can change in a day". For its foldable phone , Huawei has struck a deal with BOE instead of market leaders like Samsung Display and LG Display.
    GOP House Members Move To Impeach Deputy Attorney General Rod Rosenstein

    GOP House Members Move To Impeach Deputy Attorney General Rod Rosenstein

    GOP lawmakers have threatened impeachment against the deputy attorney general on numerous occasions over the past few months. Republican leaders, however, have said in recent weeks that they are satisfied with the Justice Department's progress.
  • The case of San Antonio's stolen shark is solved

    The case of San Antonio's stolen shark is solved

    Management caught up to the suspects in the parking lot and were denied access to both searching the vehicle and the stroller. In a weird case, two men and a woman stole a shark from an aquarium by disguising it as a baby and putting it in a stroller.
    Giuliani: 'I want you to hear' Cohen tapes

    Giuliani: 'I want you to hear' Cohen tapes

    Why would it matter if Trump knew about the Trump Tower meeting? . "You said Michael Cohen was very loyal and devoted to Trump ", host Chuck Todd said to Nunberg.
    1,012 migrant parents reunited with children after latest hearing, U.S.  says

    1,012 migrant parents reunited with children after latest hearing, U.S. says

    Another 538 parents are in government custody and cleared for reunification but waiting on transportation for reunification. The number may also include some children who were already released to a different family member or friend.