May 30, 2018
2018 Q1: Economy Grew At A 2.2 Percent Rate; Business Investment Growth Largest Since 2014
Post by Freedom Partners
This morning, the U.S. Department of Commerce released its second estimate of gross domestic product (GDP) for the first quarter of 2018, announcing that the U.S. economy expanded at an annualized rate of 2.2 percent, driven by the strongest business investment in nearly 4 years. After-tax corporate profits rose by 5.9 percent in the first quarter, the fastest rate since the first quarter of 2016, and a reflection of a reduction in the corporate tax rate from the Tax Cuts and Jobs Act. Additionally, real disposable personal income increased at the fastest rate since mid-2015.
Today’s release provides another look at how the economy changed during the first five quarters of the Trump administration. Overall, annualized quarterly growth averaged 2.5 percent during this time, and real after-tax income per person increased by $703. Further, the economy recorded its 16th quarter of consecutive growth.
While the full potential of the Tax and Cuts and Jobs Act will be realized over the long-term, there’s no denying the positive impact it’s already having just five months since being signed into law. This historic legislation is already spurring job creation, making businesses more competitive, and improving the lives of millions of Americans. To date, around 400 businesses have already announced plans to invest in the economy and give more money back to employees.
Below is a deeper look at the numbers from today’s report, what they say about the state of the U.S. economy during President Trump’s first five quarters.