Thanks to consumers, US economy is rising steadily if slowly

Thanks to consumers, US economy is rising steadily if slowly

Posted: Updated:

WASHINGTON (AP) — The U.S. economy slowed in the spring, and most analysts expect it to weaken further in the months ahead. Yet the main driver of growth — consumer spending — remains vigorous enough to keep the economy growing steadily if still modestly.

Spending by households, which accounts for about 70% of economic growth, accelerated in the April-June quarter to its fastest pace in nearly five years. Eventually, President Donald Trump’s tariffs on hundreds of billions of dollars in imports could bring higher prices and lower consumer spending. But for now, household spending remains a vital pillar of the economy.

The nation’s gross domestic product — the broadest gauge of economic health — grew at a moderate 2% annual rate in the April-June quarter, the Commerce Department reported Thursday. That was down from a 3.1% growth rate in the first quarter, but it would have been much weaker without a burst of consumer demand.

Economists generally expect growth to slow to a 2% annual rate or less for the rest of the year. But most think consumer spending will be enough to offset headwinds ranging from a slowing global economy to growing uncertainties caused by Trump’s trade war with China.

In the April-June period, consumer spending shot up to an annual rate of 4.7%, the best showing since the final quarter of 2014. The surge followed two weak quarters for spending as car sales sank and households grew cautious after a stock market fall and a partial shutdown of the government.

You can read the full story here

  • NEWSMore>>

  • Deal Potential Uncertain As Chinese Trade Talks Begin

    Deal Potential Uncertain As Chinese Trade Talks Begin

    Friday, September 20 2019 10:23 AM EDT2019-09-20 14:23:30 GMT

    Deputy level trade talks between the U.S. and China are on today, but the potential for an interim deal depends on which official you talk to. South China Morning Post says the interim agreement is expected during next month's high-level talks. The Post cites a researcher affiliated with the Chinese government, but last week the Trump Administration strongly denied that notion, after Bloomberg reported it. The Chinese publication predicts Beijing will agree to buy more farm products ...

    Deputy level trade talks between the U.S. and China are on today, but the potential for an interim deal depends on which official you talk to. South China Morning Post says the interim agreement is expected during next month's high-level talks. The Post cites a researcher affiliated with the Chinese government, but last week the Trump Administration strongly denied that notion, after Bloomberg reported it. The Chinese publication predicts Beijing will agree to buy more farm products ...

  • A look inside hunting neon scorpions in Arizona

    A look inside hunting neon scorpions in Arizona

    Friday, September 20 2019 10:06 AM EDT2019-09-20 14:06:05 GMT

    LOST DUTCHMAN STATE PARK, Arizona (AP) — As the setting sun left a yellow tinge on dirt-colored cactuses as far as the eye could see, park ranger Anna Roberts gave us a lesson on what we were about to hunt. 

    LOST DUTCHMAN STATE PARK, Arizona (AP) — As the setting sun left a yellow tinge on dirt-colored cactuses as far as the eye could see, park ranger Anna Roberts gave us a lesson on what we were about to hunt. 

  • Fairgrounds to Sharegrounds

    Fairgrounds to Sharegrounds

    Friday, September 20 2019 9:56 AM EDT2019-09-20 13:56:15 GMT

    Rural communities sometimes lack access to fresh, local produce but a project looks to change that. The Arkansas Farm Bureau shares how they are using current community gathering sites for service.

    Rural communities sometimes lack access to fresh, local produce but a project looks to change that. The Arkansas Farm Bureau shares how they are using current community gathering sites for service.

Powered by Frankly
All content © Copyright 2000 - 2019 Frankly and RFDTV. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service , and Ad Choices .