U.S. economy grows 2.6% in Q2

PanARMENIAN.Net - The U.S. economy grew by 2.6% in the second quarter, according to Commerce Department figures, SkyNews reports.

The growth was mainly put down to a recovery in consumer spending, following a slow performance during the winter.

Consumer spending makes up more than two-thirds of the American economy and it grew at a rate of 2.8% during the second quarter, up from the 1.9% of the previous quarter.

Despite this, the growth figure still fell short of the optimistic goals set by U.S. President Donald Trump.

Trump had campaigned on a promise of tax cuts and regulatory relief which he hoped would boost growth to 4% or better but his economic programme has not moved forward in Congress.

There are also fears that, as annual wage growth struggles to get above 2.5%, consumer spending will once again come under pressure.

Business spending was up by 8.2% in the second quarter, the best result since the third quarter of 2015 and the third consecutive increase.

Trade contributed 0.18% to the growth figure but housing contracted at 6.8%, its worst performance since the third quarter of 2010.

Meanwhile, growth for the first quarter was revised down to 1.2% instead of the previously reported 1.4%.

On news of the 2.6% growth, the dollar fell against a number of currencies but prices for U.S. government bonds were up.