U.S. Growth Accelerates, but Remains Short of Pace Promised by Trump
“This is a turnaround from last year, when a stronger dollar was a drag on growth.”
With economists like Mr. Gapen forecasting growth of 2 percent to 2.5 percent in the second half of the year, the economy’s performance
during Mr. Trump’s first year in office is likely to end up almost exactly in line with what prevailed under President Barack Obama
By NELSON D. SCHWARTZJULY 28, 2017
The American economy grew at an annual rate of 2.6 percent last quarter, a big pickup from the beginning of 2017,
but well short of the pace President Trump has promised and lower than what many experts had been anticipating until recently.
“The economy remains in a modest growth path, and last quarter was driven by gains in household
and business spending,” said Michael Gapen, chief United States economist at Barclays.
The economy benefited last quarter from healthy consumer spending
and exports, while less robust state and local spending, along with slower inventory growth, were a headwind.
In the first quarter of this year, the economy expanded at an annual rate of 1.2 percent, a disappointing showing by any measure and one
that followed slow seasonal starts over the past several years.
“The surprise came in the area of trade, where it looks like solid growth outside the U. S. and a weaker dollar boosted exports,” Mr. Gapen added.