WASHINGTON, Aug 29 (KUNA) -- The U.S. economy grew slightly faster than expected between April to June, according to Commerce department figures reported Wednesday.
In its latest report, the Commerce Department estimated the country's gross domestic produce (GDP) rose at an annual rate of 4.2 percent in the second quarter of this year, revised up from 4.1 percent in an earlier estimate.
This is the fastest pace of growth in nearly four years and indicates showed that business investment and inventories contributed more to growth than previously thought.The latest GDP estimates suggest US economy may be on track to hit the Trump administration's target of 3 percent annual growth.
Economists had expected second-quarter GDP growth would be revised down one tenth of a percent to a 4 percent pace in response to tariff hikes between the US, China, the European Union, Canada and Mexico coming into effect.
President Donald Trump lauded the Commerce Department report and a separate Conference Board report released Tuesday that showed American consumer confidence rose in August to its highest level since October 2000, stating in a tweet: "Consumer Confidence Index, just out, is the highest in 18 years! Also, GDP revised upward to 4.2 from 4.1. Our country is doing great!"
But economist warn that the the growth is unlikely to be sustained as the quarter reflected unique boosters, including Trump's USD 1.5 trillion tax cut package, which helped moved consumer spending upwards, and revenue from soybean exports to China ahead of raised tariffs coming into effect.
On the downside, according to the Commerce Department's report, consumer spending, the biggest contributor to growth, was lowered to 3.8 percent in the second quarter instead of the previously reported 4 percent. (end)