Jun 28, 2018
2018 Q1: Economy Grew At A 2 Percent Rate; Business Investment Growth Largest Since 2014
Post by Freedom Partners
This morning, the U.S. Department of Commerce released its third and final estimate of gross domestic product (GDP) for the first quarter of 2018, and announced that the U.S. economy expanded at an annualized rate of 2 percent, driven by the strongest business investment in nearly 4 years. While consumer spending was one of the slowest rates observed in recent years, analysts expect stronger readings next quarter as consumers enjoy higher take home pay, a stronger labor market, and an increase in wages. Additionally, real disposable personal income increased at the fastest rate since mid-2015.
Today’s release provides another look at how the economy has changed during the first five quarters of the Trump administration. Overall, annualized quarterly growth averaged 2.5 percent, and real after-tax income per person increased by $732. Further, the economy recorded its 16th quarter of consecutive growth.
However, recently-imposed tariffs have already burdened American businesses, workers, and consumers with higher costs, and have undermined the benefits of the current administration’s economic growth agenda, including tax and regulatory reforms.
Below is an examination of today’s report, detailing what the findings indicate about the U.S. economy during President Trump’s first five quarters.