United States economy expands at annual rate of 2.6 pct in Q2

Donald Trump plays a stroke in 2012 as he officially opens his multimillion pound Trump International Golf Links course in Aberdeenshire Scotland

US GDP grew by an annualised rate of 2.6 per cent in the second quarter, according to an early estimate by the US Bureau of Economic Analysis (BEA), broadly in line with expectations. Consumer spending, which makes up more than two-thirds of the U.S. economy, grew at a 2.8 per cent rate, accelerating from 1.9 per cent pace in the first quarter.

One potential warning sign is in private domestic investment, a signal of future growth.

The Commerce Department said the GDP growth in the second quarter reflected positive contributions from consumer spending, non-residential fixed investment, exports, and federal government spending.

"I feel much more confident that we're going to stick the landing on tax reform because we have now said we have consensus, here's the framework, let's go get it done", Ryan said on Fox Business.

That puts the first half average growth at 1.9%, still under 2%, and no great shakes, points out Thomas Byrne of Wealth Strategies & Management.

The U.S. economy gathered momentum during the first full quarter with President Trump in charge.




That would add on to 3.7 percent growth in the first quarter, which made Canada a leader among its industrialized peers and suggests the economy has turned the corner two years after being hit by tumbling oil prices.

The latest growth was partially driven by an increase in consumer spending.

The Fed's favored measure of inflation - a personal consumption expenditures price index that excludes volatile price changes in food and energy - grew just 0.9 percent in the first quarter, below the Fed's target rate.

What's held this current economy from growing at a faster pace, he says, is a mix of things including "policy mistakes.political infighting in Washington.and business uncertainty". "For consumers to continue to lead the economy we need wage growth to accelerate". Economists had expected the Q2 figure to be closer to 2.7%.

The Canadian dollar added to gains against the greenback immediately after the report, while traders increased their bets of another interest rate hike from the Bank of Canada, which earlier this month raised rates for the first time in almost seven years.

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