Trump to Hit the Campaign Trail

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Strong consumer and government spending fueled the increase, as did a short-term jump in trade ahead of tariffs announced by the White House and USA trading partners.

As President Donald Trump and corporate media outlets on Friday enthusiastically touted new GDP figures showing that the USA economy grew by 4.1 percent in the second quarter of 2018, many economists and progressive commentators were quick to counter the glowing headlines by pointing out that corporations and the rich are feasting on most of the growth while workers see their wages fall.

This rate of growth, however, was less than what was forecasted by economists.

Figures showed that consumer spending rose at a rate of 4 per cent in the second quarter, up from the 0.5 per cent rate seen in the previous three months.

Private forecasters cautioned that the April-June pace may be unsustainable because it stems from temporary factors.

That would be about double the growth rate in recent years. US President Donald Trump cheered the numbers, holding an impromptu press conference outside the White House to tout the "amazing" growth and said "this is just the beginning". Personal consumption increased by 4% in the first full quarter after President Donald Trump's new tax law went into effect.

Quarterly growth of 4 percent or more is not uncommon.

Tinnaporn Sathapornnanont/Dreamstime.comThe Commerce Department's Bureau of Economic Analysis says the nation's real gross domestic product grew 4.1 percent in the second quarter of 2018.

In a CNN Money story titled "Trump promises 4% growth".

Trump has also imposed tariffs on steel and aluminum imports, leading to retaliation by the United States' main trade partners, including Canada, the European Union, Mexico and China. Both he and Shepherdson had predicted very strong second-quarter GDP growth of 4.5 percent or higher. "If I would have used these numbers during the campaign, the fake news back there would've said he's exaggerating".

"What we're seeing in the Trump economy is wages going up for the first time in a long time", Peter Navarro, the top trade adviser to the president, told NPR Friday before the GDP report was released.

Besides Trump's hint, there were other reasons the economy was expected to accelerate in the second quarter from the upwardly revised 2.2% pace of growth recorded in Q1. Government spending also posted a solid gain, rising at a 2.1 percent annual rate.

"Once again we are the economic envy of the entire world", Mr Trump said.

"This morning's data confirms that growth has accelerated and that inflation is running close to the target", the report said.

He said the GDP numbers also underscored the urgent need for the job-training programs that the administration is pushing.

There are worries that America's numerous trade spats are now hitting economic growth.