U.S. economy records fastest growth in 2 years

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At its halfway point, American GDP is up 2.1 percent which indicates two-tenths of a percentage point improvement from previous estimates.

The second-quarter acceleration was fuelled by an eighth-consecutive monthly GDP increase in June that included the construction sector's largest gain in four years.

Despite almost uniform skepticism from mainstream economists, he insisted that much faster economic growth was within reach. "So we're really on our way".

However, history tells us that once rebuilding kicks in, the net impact of disasters on national GDP tends to be small and short-lived (even Katrina had no more than a fleeting effect on GDP growth), so we should still be on track for a solid economic performance through the rest of the year.

Many economists had been forecasting growth in the current July-September quarter would be around 3 percent.

The strong June number also suggests the third quarter could be off to a good start.

"Even as we see daylight in today's economy, we find ourselves in the shadow of daunting longer-term challenges to economic growth and shared prosperity", said John Williams, president of the Federal Reserve Bank of San Francisco, in an august 2 speech.

During last year's presidential campaign, Trump repeatedly attacked the Obama administration's economic record.

Many forecasters expect continued modest growth in the coming years, shaped by long-term demographic and other forces.

The result, which comes after robust growth in the first quarter, marks Canada's fastest growth in the first six months of a calendar year since 2002. The nonpartisan Congressional Budget Office sees growth averaging 1.9 percent over the next decade, a forecast much closer to estimates made by private economists. Overall growth is expected to remain healthy in the current quarter.

Earlier this month, Container Store Group's CFO Jodi Taylor said that the company "has seen solid growth in the higher-ticker portion" and holds "the opinion that the customer is still spending". I suspect that what we are seeing now in terms of stronger equipment investment is merely a trickle of the pent-up reservoir of spending that could gush if a well-crafted corporate tax reform were to actually be enacted.

The pickup in business investment "reflects two important factors", said Stephen Stanley, chief economist at Amherst Pierpont Securities, in a note to clients. Much of the strength came from a sharp upward revision in spending on autos, which the government initially estimated as declining in the spring. Government fixed investment was slightly weak, rising just 0.5 percent. "This could subtract 0.2 % to third quarter GDP growth, although this may be higher when the estimates on the damages will be available", stresses Chris Low, chief economist FTN Financial.