US economy grows 2% in Q2

  • by Ofeed Team
  • August 29, 2019, 19:54 AM
  • 31 Views
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The U.S. economy fell relatively lower than analysts' expectations during the second quarter, as lower exports and inventory volumes offset strong growth in consumer spending.

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Data released by the Ministry of Commerce today showed that GDP increased in the second quarter of this year by 2%, following an adjustment from the 2.1% estimated last month. The economy grew by 3.1% in the January-March quarter.

On the other hand, the positive reviews came from personal spending, which grew at a rate of 3.10%, up from an initial estimate of 2.85%. Federal government spending is also positively up 0.52 basis points from 0.51 basis points, while domestic government spending rose 0.25 basis points to 0.35 basis points.

Exports fell 5.8% in the second quarter after a 4.1% increase in the first quarter. On the other hand, imports increased by 0.1%, led by commodity purchases by 0.3% versus 2.8%.

It should be noted that, the direct negative effects of the U.S.-China trade war are increasing day by day and threatening economic expansion, we see the negative effects of the war on global stock markets in addition to the reversal that occurred in the U.S. bond yield curve, which helped to feed Current fears of an economic recession.

It is worth mentioning that the expectations that the Federal Reserve is on its way to cut interest rates again at its next meeting, under the constant pressure of Us President Donald Trump, and after the fourth-quarter growth data may increase the chances of the Fed continuing its policy of expansion Monetary policy.

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