Trump's forecast of 4% GDP close to coming true as Americans spend tax-bill proceeds
Surging consumer spending is driving GDP well above prior estimates, and it is now tracking near 4 percent for the second quarter.
That's almost double the pace of the first quarter.
Economists say the consumer is seeing the impact of the tax cuts and is spending, as a result of more disposable income.
Armed with new-found proceeds from the tax bill, American consumers went shopping in May, driving retail sales — and economic growth — sharply higher.
The economy in the second quarter is tracking close to 4 percent growth — a level President Donald Trump raved about last December, just before the tax bill was approved. At the same time, he had also told reporters he was holding out for a doubling of growth to 6 percent.
For now, his 4 percent forecast is close to coming true on a quarterly basis, after strong retail sales data pushed up tracking GDP growth for the second quarter to about double the first quarter's level. The economy grew by 2.2 percent in the first quarter.
CNBC/Moody's Analytics Rapid GDP Update reported economists' estimates of tracking GDP show average growth at 3.8 percent, following Thursday's retail sales report. Their actual forecasts, which take into account economic reports yet to be released, is running at an average 3.6 percent.
Retail sales in May were up 0.8 percent, double what some economists expected. Without autos, sales were up 0.9 percent.
wrote JP Morgan chief U.S. economist Michael Feroli. If the economy hits that growth rate, it would be the best since the third quarter of 2014."On the heels of this data we now estimate real GDP is expanding at a 4.0% annual rate in Q2, up from our prior estimate of 2.75% and almost twice the 2.2% growth rate experienced in Q1,"
https://www.cnbc.com/2018/06/14/trum...-proceeds.html
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Originally Posted by noise
Lying liberal snowflake gonna cry. 
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