U.S. Growth Accelerates, but Remains Short of Pace Promised by Trump<br />“This is a turnaround from last year, when a stronger dollar was a drag on growth.”<br />With economists like Mr. Gapen forecasting growth of 2 percent to 2.5 percent in the second half of the year, the economy’s performance<br />during Mr. Trump’s first year in office is likely to end up almost exactly in line with what prevailed under President Barack Obama<br />By NELSON D. SCHWARTZJULY 28, 2017<br />The American economy grew at an annual rate of 2.6 percent last quarter, a big pickup from the beginning of 2017,<br />but well short of the pace President Trump has promised and lower than what many experts had been anticipating until recently.<br />“The economy remains in a modest growth path, and last quarter was driven by gains in household<br />and business spending,” said Michael Gapen, chief United States economist at Barclays.<br />The economy benefited last quarter from healthy consumer spending<br />and exports, while less robust state and local spending, along with slower inventory growth, were a headwind.<br />In the first quarter of this year, the economy expanded at an annual rate of 1.2 percent, a disappointing showing by any measure and one<br />that followed slow seasonal starts over the past several years.<br />“The surprise came in the area of trade, where it looks like solid growth outside the U. S. and a weaker dollar boosted exports,” Mr. Gapen added.
