Mexican Media Brands
U.S. Economy Expands 4.1%
Real gross domestic product in the U.S., which rose 2.2% in the first quarter, climbed by an annualized 4.1% in the second quarter of 2018, according to an initial estimate by the Dept. of Commerce.
#economics
Share
Real gross domestic product in the U.S., which rose 2.2% in the first quarter, climbed by an annualized 4.1% in the second quarter of 2018, according to an initial estimate by the Dept. of Commerce.
The expansion is the largest for any period since the third quarter of 2014. The bureau will revise its estimate in late August and again in late September as further data become available.
Second-quarter growth was driven by stronger consumer and government spending. But analysts caution that growth was affected by unusual factors and isn’t like to be sustained later in the year. They point to a 9% jump in exports. The surge was driven largely by real and threatened U.S. import tariffs, which prompted buyers overseas to stock up—notably on soybeans—ahead of expected retaliatory import taxes by their home countries.
The bureau notes that growth in real disposable personal income slowed to 2.6% in April-June from 4.4% in the first quarter. Personal savings shrank 4%.
RELATED CONTENT
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.