In the first three months of 2017, the US economy registered growth of 1.2% than the initial estimation but the consumer spending reduced. The change was recorded after revisions were made to business and consumer spending. The growth was not impressive compared to the first quarter of 2016. On the same, it was a blow to President Donald Trump who had ambitious goals of sharply boosting US economic growth rates. During the 2016 presidential campaigns, Trump had pledged to hit a 4% annual GDP growth which now seems unrealistic.
Economists predicted that the economic indicators were not convincing for a sharp bounce in the second-quarter due to the recorded weak spending and reduced business investments. Financial advisors suggested that the economy would only grow for a maximum of 3% base on its current situation. However, Trump proposed measures that will promote economic development including tax cuts at the individual and the corporate level.
Fortunately, the second quarter reported positive contributions with the slight increase in gross domestic product inclusive of expenditures in personal expansion and exports. The second quarter growth estimate ranged between 2.0 and 3.7 percent rate. The growth acceleration has been substantially driven by consumer spending which accounts for two-thirds of US.