Models predict a GDP growth of 5 percent in the second quarter:

Market Watch:
Some forecasting pros suggest the U.S. economy could top 5% growth in the period running from April to June, perhaps clearing the highest bar in 15 years.

After a surprising drop in the U.S. trade deficit in May, a handful of Wall Street firms jacked up their estimates for the second quarter and more are likely to do so.

Most notably, Macroeconomic Advisers raised its forecast to 5.3% from 4.5% for gross domestic product, the official scorecard for the U.S. economy. The firm’s forecast is one of the most detailed on Wall Street.

A closely followed GDP tracker by the Atlanta Federal Reserve, meanwhile, estimates the U.S. will expand at a 4.5% annual rate in the second quarter.

Why is the economy suddenly growing so fast? Consumer spending has bounced back after a paltry increase early in the year, buoyed by tax cuts and a strong labor market in which jobs are plentiful. Business investment has been strong. And the nation’s trade deficit has been smaller than expected.

Also Read: Why Trump thinks he can win a drawn-out fight over trade with other countries
Some of the same people who were predicting that the growth would never rise above three percent are not predicting that this strong growth will not last.  However, of the labor market remains tight, we will likely see the kind of wage growth that could sustain the growth.  If Trump can get trading partners to drop their tariffs in exchange for teh US not imposing like tariffs then it is possible the world economy could also expand.


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