American first-quarter GDP surge speeds down

American first-quarter GDP surge speeds down

In the first quarter, the economy of the United States speeded down more than previously predicted in the face of the poorest consumer spending for the last five years, although surge has regained momentum due to a firm labor market as well as tax cuts.

As a matter of fact, gross domestic product managed to ascend at a 2% annual rate from January to March. That’s what the Commerce Department informed on Thursday in its third prediction of first-quarter gross domestic product, versus the 2.2% tempo posted in May.

In the fourth quarter the American economy rallied at a 2.9% rate. Apparently, the downgrade to first-quarter surge pointed to weaker consumer spending as well as a smaller inventory build than the authorities had evaluated in May.

A $1.5 trillion income tax cut package that came into effect in January, is supposed to ensure faster economic surge in the second quarter, thus putting annual GDP surge on track to reach the Trump administration's 3% objective.

However, market experts point out that the administration's stance "America First" that has heightened worries of trade clashes, are threatening the economy's prospects.

America is involved in tit-for-tat trade duties with its key trade partners, such as Canada, Mexico, China and the EU. Market experts are afraid that the duties are capable of disrupting supply chains, undercutting business investment and even wiping out the fiscal stimulus.

Estimates of second-quarter surge point to a rate of 5.3%. Market experts had hoped first-quarter GDP surge wouldn’t be revised, keeping to a 2.2% tempo.

However, the moderate first-quarter surge can hardly be a true indicator of the US economy's health due to the fact GDP is prone to weakening at the start of the year due to a seasonal quirk.

Meanwhile, US equities were mostly intact.



Asian shares tumble with Japan markets shut

On Monday, stocks in Asia declined with markets in Japan unavailable for a holiday and traders watching oilfield-related stocks after a bankruptcy filing by Singapore's Ezra Holdings…

Greenback surges as yields soar

On Friday, the evergreen buck added against the Japanese yen and euro, drifting away from recent minimums, though revenues were capped as traders focused on a showdown between Donald Trump and members of his own party as for a fresh healthcare bill…

Deposit with your local payment systems


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera