The U.S. economy grew 4.1% in the second quarter, the fastest growth since 2014. Economists surveyed by Bloomberg were expecting 4.2% growth.
Bottom line: The economy is booming (U.S. GDP growth last topped 4% in 2014), but growth is expected to slow later this year, Bloomberg reports, as benefits from the tax cuts fade and the Fed again raises interest rates.
Trade played a large role in the second quarter’s bumper growth. Net exports added 1.06 percentage point to the quarter’s 4.1% GDP growth rate, as exports rose strongly.
Pantheon Macroeconomics Chief Economist Ian Shepherdson:
Societe General economist Omair Sharif to Bloomberg:
I wouldn’t want to overstate the underlying strength in GDP growth based on Friday’s numbers... There was a big boost from trade, but that’ll go away.