If the economy grows at 3% or more in 2018, it will be the highest annual rate since 2005. "We are now on track to hit an average GDP annual growth of over 3 percent and it could be substantially over 3 percent". And, ironically, Trump's various protectionist measures spurred a boom for USA exporters - because foreign buyers were eager to stock up on American goods before their governments slapped retaliatory tariffs on such products.
Exports also grew by more than 9%, the fastest rate since the fourth quarter of 2013.
With the Friday data, the Commerce Department also released comprehensive GDP revisions going back decades.
The United States slapped 25 percent duties on $34 billion worth of Chinese goods effective July 6, provoking a similar response from Beijing, which targeted soybeans and other agricultural products as well as USA -made cars.
In fact, the skepticism from economists has centred more on whether strong GDP growth would be sustainable after a few quarters.
President Donald Trump said his tax cuts and trade policies helped growth and would continue to help the economy expand. But the stimulus is expected to fade sometime next year.
Yankees acquire JA Happ for Brandon Drury, Billy McKinney
He dealt with a freak injury earlier in the season and lost his third base job to rookie Miguel Andujar , who has been fantastic. Happ was 0-3 in his last four starts, and had been hit hard this month by the Yankees and Boston-an error severely cost him.
According to the Associated Press, the economic uptick was driven by consumers who began spending their tax cuts and exporters who sought to get their products delivered ahead of retaliatory tariffs. "A lot of economists think it is a one off and it will slow".
For now, strong growth in the second quarter will keep the Federal Reserve on course to raise interest rates two more times this year.
The President also pointed out a decrease in trade deficit with a number of countries and vowed economic growth for the US will continue as a number of agreements are renegotiated. As businesses and consumers reset on account of lower tax rates, year-over-year spending hikes will dissipate.
A large, temporary surge in agricultural exports, specifically soybeans, should also juice growth in the second quarter.
Business Investment The growth in nonresidential business investment contributed nearly 1 percentage point to growth though the 7.3 percent pace was slower than the first quarter's 11.5 percent.
"Overall, there are clearly a number of factors suggesting the economy is firmly on a solid - albeit far from robust - footing, at least for now", she said. Residential investment declined for the second straight quarter, by 1.1% in the second quarter, versus 3.4% in the preceding quarter; those declines were givebacks from the 11.1% jump in the last quarter of 2017, however. Central bank officials have raised rates twice this year and they are widely expected to leave its benchmark rate unchanged at the Fed's policy meeting next week and then increase it in September by a quarter of a percentage point, to a range between 2 per cent and 2.25 per cent. Facebook lost more than $150 billion in value in one day, and there are signs other companies will lose value as soon as the trade war heats up.
General Motors, Ford and Fiat Chrysler on Wednesday cut their full-year profit forecasts, citing higher steel and aluminium costs.