WHAT THEY're SAYING...

ABOUT THE ECONOMY

U.S. ECONOMY KEEPS SURGING

The economy is growing at the fastest pace since 2014. 
The U.S. is reaping the rewards of strong pro-growth policies, including tax relief and regulatory relief.


Friday's second quarter 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.

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Q2 of 2018 was the largest quarter of economic growth in four years.

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ECONOMIC GROWTH IN Q2 MARKS LARGEST IN FOUR YEARS 

On July 27th the Commerce Department reported that the economy expanded at a rate of 4.1 percent in the second quarter of 2018. It is also the third-best growth rate since the Great Recession. 

The U.S. economy is now a $20 trillion economy, marking the first time a country has hit that level. 


Personal income continues to increase.

The Q2 2018 report showed a sharp increase in the personal savings rate. People have more money to spend. The increased rate of personal savings was a result of wages and salaries jumping from 6.7% to 3.4% for 2017 and averaging 7% in the first half of the year. 
Real disposable personal income rose to 2.6 percent, building on the growth of 4.4 percent in the first quarter of 2018. 


As a
Wall Street Journal article put it: "that's about $500 billion more in the pockets of Americans than previously estimated and helps explain why consumer spending has remained strong."


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WORKERS HAVE MORE MONEY IN THEIR POCKETS

Compensation has reached a 10-year high.

WORKER COMPENSATION HITS 
10-YEAR HIGH

"The employment cost index increased 0.6 percent for civilian workers in the three-month period ending in June, according to a Bureau of Labor Statistics release Tuesday. That brought the 12-month rate up to 2.8 percent, the highest level since 2.9 percent in the third quarter of 2008, amid the financial crisis and the Great Recession.

CNBCWorker Pay Rate Hits Highest Level Since 2008


Consumer spending is up.


Consumer spending was the largest contributor to real GDP growth in the second quarter, and is driving the economy.

"The U.S. economy grew at its fastest pace in nearly four years in the second quarter. . . Consumer spending is being driven by the lower taxes and a robust labor market, which created an average of 215,000 jobs per month in the first half of this year." Reuters


Tax reform continues to deliver.
The U.S. has created 1,287,000 new jobs since the Tax Cuts and Jobs Act became law and 3,827,000 new jobs since President Trump was elected in November 2016.
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UNEMPLOYMENT at NEAR 18 YEAR LOW

Today, there is one job open for every jobless person.
Unemployment remains low, and today there is one job open for every jobless person. As of March, the U.S. had 6.6 million job openings, the highest on record. There were also 6.6 million unemployed Americans – or, one for every open job. During the recession, there were more than six unemployed Americans for every open job. 
UNEMPLOYMENT REMAINS AT NEAR 18 YEAR LOW
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CONFIDENCE IN ECONOMY KEEPS GROWING

Americans say economy is "most important thing going well."

In a recent poll, Gallup found “Americans Say Economy is ‘Most Important Thing Going Well.”  The polling firm asked Americans what they thought was going well in the country, and the result was overwhelming – the economy was the most popular answer by far. 

When asked to rate the economy, 55 percent called it good or excellent. 

Not surprisingly, Gallup also found that American’s economic confidence is at a 14 year high.

Americans' Economic Confidence Remains High
Small businesses are experiencing record optimism.

Small business optimism remains historically high according to NFIB's 2018 report

In it's report, NFIB found that a net ten percent of all small business owners (seasonally adjusted) reported higher nominal sales in the past three months compared to the prior three months. June is the seventh consecutive strong month of reported sales gains. 

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