Economic growth blows past expectations in May, powered by energy industry

Friday's number is just the first estimate on second quarter GDP growth.

The second quarter is the first one that is more a Trump quarter than an Obama quarter, though of course we'll be saddled with Obama's lousy economic program for a long time.

The pick-up was helped by consumer spending in the quarter expanding at a pace of 2.8%, and businesses stepping up spending on equipment.

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The country's gross domestic product, a broad measure of economic activity, grew at an annualized pace of 2.6 percent in the second quarter of 2017, the Commerce Department said.

Consensus expectations were for an increase of 2.5% for the quarter.

The critical factor in the Q2 rebound is the pick-up in consumer spending.

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Business spending, characterized as nonresidential fixed investment, also made a positive contribution to growth as it increased by 5.2%. The Commerce Department, which releases the data, will revise it in coming months, once it gets more accurate data. Many of President Donald Trump's economic plans, including tax cuts and the administration's budget, rely on having higher economic growth to generate more revenue for the government. The result was the best since October 2000 when the economy posted year-over-year growth of 4.7 per cent.

But with wage growth remaining sluggish there are concerns spending may slow in the next quarter. At an annual growth rate of 2.1 percent it falls far short of the 3.3 percent average growth the USA economy recorded from the 1970s through the 1990s.

"While the blow-out headline advance no doubt exaggerates the underlying strength in growth, the fact is that every single major surprise for the economy this year has been to the upside", Porter said. This is not far from the 2.1 percent average growth rate seen since the Great Recession, but I continue to believe that there is upward potential in the forecast, especially for 2018, if pro-growth policies are enacted.

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None had the rare mutation, known as delta 32, that produces immune system cells lacking the receptors to which HIV attaches. While other children saw their viral loads rebound, the girl still has no detectable HIV in her blood, researchers said.

"Although growth is solid, the lack of wage pressure buys the Fed plenty of time, and works with a very "gradual" tightening cycle", said Alan Ruskin, of Deutsche Bank in NY. It was the third straight quarterly increase. "The issue of "residual seasonality" is likely to persist through the upcoming revision".

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