january-march quarter: The resurgent strength in household spending was offset by a widening of the trade deficit and slower business inventory rebuilding, according to The Japan Times. Those two factors combined pared annual GDP last quarter by 1.5 percentage points. The gross domestic product, the economy's total output of goods and services, grew at a 2.1% annual rate last quarter, down from a 3.1% gain in the first quarter, the Commerce Department estimated Friday. ; But consumer spending, which accounts for 70% of economic activity, accelerated to grow at a sizzling 4.3% rate after a lackluster 1.1% annual gain in the January-March quarter. Economists also noted that business capital investment, which has been strong for the past two years, fell at a 0.6% annual rate in the April-June quarter, the first decline in three years. Indeed, most analysts think the U.S. economy could slow through the rest of the year, reflecting both global economic weakness and the trade war between the world's two largest economies. That weakness likely reflects, at least in part, a reluctance by businesses to commit to new projects because of uncertainty surrounding President Donald Trump's confidence-shaking trade war with China.
(news.financializer.com). As
reported in the news.
Tagged under january-march quarter, goods services topics.