President Donald Trump's goal of 3 percent growth has been realized in two of the three quarters since he took office, and economists say the trend can keep going for at least another quarter and possibly longer.
Third-quarter GDP grew by 3 percent, well above the 2.5 percent expected by economists surveyed by Thomson Reuters and below the 2.8 percent in the CNBC/Moody's Rapid Update. The third-quarter number comes on top of 3.1 percent growth in the second quarter, making for the best back-to-back quarters since 2014 and ending a long streak of sluggish 2 percent growth.
One factor aiding the improvement was an 8.6 percent annualized rise in business spending on capital equipment, coming on top of an 8.8 percent pace in the second quarter.
"Give credit where credit is due," wrote Chris Rupkey, chief financial economist at MUFG Union Bank. "Trump's economics team has been steering the country since January, and the economy has hit the Administration's 3 percent target two quarters in a row. … This economy in its ninth year of expansion shows no sign of tiring and turning down and may outlast the 10 years of growth during the Clinton presidency."
In no way do I believe President Trump's economy will have growth that outlasts the ten years of growth during the Clinton presidency. The market is due for a correction.
ReplyDeleteit will be interesting to see if the budget just passed by the senate will have any effect on the economic growth
ReplyDeleteIf the economy keeps going the way that it is, then I think that it will surpass the growth achieved during the Clinton presidency, especially if Trump gets reelected because if his policies and new budget proves to be effective, it will have time to show and out growth the Clinton presidency.
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