Following the Trump administration coming into office the economy is doing better and better by the day. The gross domestic product has continued to increase. In the final and third estimate of Q4 GDP, the BEA changed the prior estimate of 1.8% to 2.1%. It is being attributed to a sharp rise in consumer spending.
Consumer spending rose to 3.5% after previously being at 3.0% in Q2. Consumption by itself was more than then entire GDP increase. The second revision showed a 2.05% increase.
BREAKING: US economy grew at 2.1 percent rate in Q4, upward revision powered by consumers.
— The Associated Press (@AP) March 30, 2017
The real GDP spending increase is a result of a plethora of variables which include,
- Consumer spending
- Private inventory investment
- Residential investment
- Business investment
- State and local government spending
In part though they were offset by declines in the department of exports and federal government spending. Imports are determined by subtracting the calculation of the GDP. Look at some of the graphs below,
Foreign travel, recreation services, gasoline and other energy goods were the biggest economic contributors to the upward revision. Purchase prices for American goods have increased 2.0% after consistently increasing over previous quarters. This did not include energy and food.
On other fronts, nonfinancial corporations decreased 4.9% in the fourth quarter while there was a 5.4% percent increase in financial corporations. Corporate profits increased in the United States 9.3%.
Overall under the Trump administration, the economy is slowly but surely getting better and better. Increases are never going to go in spikes but instead come in slow but consistent increases. It is the President’s pro-business policies that are no doubt playing a role in this success. He has already rolled back anti-coal regulation as well as the halting of the Keystone and Dakota Access pipeline.
Trump knows what it means to be successful and he is bringing that success to the American economy. We will only continue to win from here.
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