Current US economic expansion cycle is the slowest on record

US GDP Sets Stage For US Dollar Test Multiple Pairs Approach 200-WMA

US GDP Sets Stage For US Dollar Test Multiple Pairs Approach 200-WMA

The U.S. economy grew at an annual rate of 2.6 percent between April and June.

The "Big Six" tax reform negotiators released an update this week but it once again lacked any significant detail other than to officially announce the demise of a border adjustment tax that was to generate over $1 trillion in annual revenue to help offset the cost of reducing rates. First-quarter economic growth was revised down to 1.2%.

The outcome for the second quarter and the downwardly-revised growth in the first quarter, put growth in the first half of 2017 at 1.9 percent, above the 1.5 percent recorded previous year and close to the economy's long-term trend growth rate of two percent.

"The acceleration in real GDP (gross domestic product) growth in the second quarter reflected a smaller decrease in private inventory investment, an acceleration in PCE (personal consumption expenditures), and an upturn in federal government spending", the Commerce Department said.

The US economy revved up this Spring driven by strong consumer spending, and hope that the President Donald Trump achieves his goals of tax cuts and regulatory relief. Investment on nonresidential structures like oil and gas wells likely provided another boost to GDP growth in the second quarter.

Trump Praises Lebanon's PM for Fighting Hezbollah - but They're His Political Allies
In response, Syria denied the USA claim of Damascus' intention to use chemical weapons, slamming it as baseless. It also has taken in 1.5 million Syrian refugees, who now comprise about a quarter of its entire population.

"Investment, which has disappointed over the past couple years, is coming back, and that's an encouraging sign for the future", said Seville. However, most economists wouldn't attribute the growth to the president's policies, since not much has been implemented yet. But while the current economic expansion is already the third-longest on record, rates of growth have remained stubbornly low, due to longer-run changes in the economy, such as the aging of the USA population.

The latest GDP data confirmed that the US economy is on track to deliver a 2 percent growth rate this year.

With little inflationary pressure present, personal income growth slowed to $118.9bn in the second quarter, from $217.6bn in the first. Economists had expected an increase of 0.2 per cent, according to Thomson Reuters. "They may want to say: Let's try to get inflation back up to target before we tighten too quickly".

Following the GDP report, the stock market held on to modest losses, with the Dow Jones Industrial Average, S&P 500 index and the Nasdaq Composite Index set to fall at the open, based on futures (http://www.marketwatch.com/story/us-tech-stocks-shape-up-for-another-day-of-selling-after-amazon-disappoints-2017-07-28) action (http://www.marketwatch.com/story/us-tech-stocks-shape-up-for-another-day-of-selling-after-amazon-disappoints-2017-07-28). The S&P 500 and the tech-heavy Nasdaq Composite opened slightly lower Friday, after reaching fresh highs earlier in the week. The economy is forecast to grow 2.7% in third quarter. "For consumers to continue to lead the economy we need wage growth to accelerate". And the USA dollar, which rallied after the election, has retreated sharply in recent months.

Meanwhile, the trade picture has improved so far in 2017 relative to challenges seen in each of the past two years, with positive contributions to real GDP in both the first and second quarters.

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