Growth re­vised up to 3 per­cent in Q2

The Reporter (Lansdale, PA) - - BUSINESS - By Martin Crutsinger AP Eco­nom­ics Writer

The U.S. economy re­bounded sharply in the spring, grow­ing at the fastest pace in more than two years amid brisk con­sumer spend­ing on au­tos and other goods.

The gross do­mes­tic prod­uct, the broad­est mea­sure of eco­nomic health, grew at an an­nual rate of 3 per­cent in the April-June quar­ter, the Com­merce Depart­ment re­ported Wed­nes­day. It was the best show­ing since a 3.2 per­cent gain in the first quar­ter of 2015.

The re­sult is a healthy up­ward re­vi­sion from the gov­ern­ment’s ini­tial es­ti­mate of 2.6 per­cent growth in the sec­ond quar­ter. The growth rate in the Jan­uary-March quar­ter was a lack­lus­ter 1.2 per­cent.

Paul Ash­worth, chief U.S. econ­o­mist at Cap­i­tal Eco­nom­ics, said he be­lieved that the strength in con­sumer spend­ing should re­sult in an “even stronger hand-off” for growth go­ing into the cur­rent quar­ter. He pre­dicted GDP would grow close to 3 per­cent this quar­ter.

Pres­i­dent Don­ald Trump hailed the lat­est fig­ures, declar­ing “we are re­ally on our way.” Trump said if the economy is able to sus­tain growth at a 3 per­cent rate, it would cre­ate 12 mil­lion new jobs and $10 tril­lion in new eco­nomic ac­tiv­ity over the next decade.

“I hap­pen to be one that thinks we can go much higher than 3 per­cent. There is no rea­son why we shouldn’t,” Trump told a crowd in Mis­souri where he was cam­paign­ing for sup­port for the ad­min­is­tra­tion’s tax plan that would cut rates for in­di­vid­u­als and busi­nesses.

Dur­ing last year’s cam­paign, Trump pledged to boost eco­nomic growth to 4 per­cent or bet­ter.

The bud­get the pres­i­dent re­leased in May projects GDP growth will rise to 3 per­cent over the next four years and re­main at that level for the rest of the decade.

THE AS­SO­CI­ATED PRESS

In this Aug. 24 photo, Kathy Tringali, right, a re­cruiter for Big 5 Sport­ing Goods, talks to job seeker Jar­rell Palmer dur­ing a job fair, in San Jose, Calif. On Wed­nes­day, the Com­merce Depart­ment issues the sec­ond of three es­ti­mates of how the U.S. economy per­formed in the April-June quar­ter.

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