Having grown faster than was expected in the first quarter of 2016, thanks in part to strengthening export sales of goods and services, the US economy’s performance during the second quarter presented a mixed picture.
In its press release for Q2, issued in late July, the US Department’s Bureau of Economic Analysis said that gross domestic product had increased at an annual rate of 1.2 per cent, though it emphasised that this figure was subject to revision.
Saying that the US economy appeared to have “lost steam” as it entered its eighth year of expansion, the Wall Street Journal (WSJ) warned that it remained vulnerable in the face of global economic turmoil.
Saying that the US economy appeared to have “lost steam” as it entered its eighth year of expansion, theWall Street Journal (WSJ) warned that it remained vulnerable in the face of global economic turmoil.
Business investment, said the WSJ, had fallen the most in six years, owing to depressed oil markets. On the plus side, consumer spending and real disposable incomes had grown, and the housing market had continued its recovery.
July saw construction of new homes rise at its fastest rate in nearly a year, led by growth in apartment building in the north-eastern US. This has increased hopes of an improvement in the economy in the third quarter.
Another positive sign was that overall industrial output, which measures factory, utilities and mining production, beat analyst’s predictions, rising by 0.7 per cent.