U.S. Economy Keeps Surging
- The economy expanded at a 4.1 percent inflation-adjusted annualized rate in the second quarter of 2018.
- This is the largest single-quarter growth in four years.
- The U.S. is reaping the rewards of strong pro-growth policies, including tax relief and regulatory relief.
The nation’s economy grew at an inflation-adjusted annual rate of 4.1 percent in the second quarter of 2018. This follows 2.2 percent growth in the first quarter and 2.2 percent growth for 2017 as a whole. This GDP report continues the recent string of good economic news we’ve seen. Companies have repatriated $306 billion from overseas, more than 1.2 million jobs have been created since tax reform became law, and unemployment is near its lowest point in 18 years.
Changes to GDP Components from Q1 to Q2, 2018
In the second quarter, personal consumption expenditures grew at 4 percent on an annualized basis. Gross private domestic investment shrank by 0.5 percent, and exports grew at 9.3 percent. Imports, a subtraction from GDP, increased by 0.5 percent. Federal government spending grew by 3.5 percent, while state and local government spending grew by 1.4 percent.
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