US growth upgraded to 3 percent in second quarter

US growth upgraded to 3 percent in second quarter
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The U.S. economy grew at an annualized rate of 3 percent in the second quarter, up from the first estimate of 2.6 percent, according to the Department of Commerce.

The second estimate, which incorporates more data, saw strong growth in personal consumption — which can indicate a general sense of financial security among the population — and nonresidential fixed investment, which can indicate bullishness on the business side.

The growth is the strongest since the first quarter of 2015, when it hit 3.2 percent, but not as high as the 5.2 percent spurt in the third quarter of 2014.

The healthy growth figure from the April-June period, which is up from the paltry 1.2 percent real gross domestic product growth seen in the first quarter, could be a boon for President Trump, whose administration has promised a decade of 3 percent growth. The quarter also saw a 0.21 percent increase in net exports, meaning a shrinking trade deficit, another key Trump promise.

Trump frequently touts good economic news and accuses the media of failing to cover it.

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Quarterly growth, however, can vary widely from the annual average; GDP growth exceeded 3 percent in five quarters since mid-2013, but the overall growth rate each year was ultimately tempered by lax growth in other quarters.

Hurricane Harvey’s pummeling of major population and production centers in Texas and Louisiana will likely constrain growth in the third quarter.

The Department of Commerce will issue its third estimate for the second quarter on Sept. 28.