Home Stocks 2019 The Trump Effect: America is Growing

The Trump Effect: America is Growing

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At 2.1 percent, the growth of US Real Gross Domestic Product during the second quarter of 2019 comes out better than expected. The weakness observed at the end of 2018 and early 2019, which was underlined by revised estimates for earlier quarters, has been wiped out especially by very strong consumption growth at 4.3 percent in Q2.

However, the strength of the economy is rather unbalanced. The growth rate of investment was negative across the board, except for technology investments. Combined with a decline in exports, largely due to weaknesses elsewhere in the global economy, this report suggests growth to retain its strength at just over 2 percent for the second half of 2019.

This report is unlikely to influence the FOMC decision making process next week, which is likely to lead to a slight reduction in the Federal Fund rate, especially given the underperformance of investment and global uncertainties. But going forward, if the US economy maintains its growth rate above 2 percent, it could moderate the appetite for further cuts later in the year.

About The Conference Board
The Conference Board is the member-driven think tank that delivers trusted insights for what’s ahead. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org.

SOURCE The Conference Board

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S. Jack Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.