The US economy is growing solidly and a spurt in the June quarter may nudge it towards a decadal high. The US had posted a GDP growth of 7.4 percent in 1951 and 7.2 percent in 1984.
1. For the Jan-Mar quarter, the U.S. economy grew at 6.4% while growth remained static at 4.3 percent in last two quarters.
2. Positive Response on Financial Support: It is widely believed that the US administration spending of $3 trillion is helping improve Consumer Spending and having a positive rub-on impact.
3. Consumer Spending: The latest data from US trade department indicates a consistent growth for the 12th time in last 13 month on big-ticket manufactured goods. These are May orders from U.S. factories.
Orders for durables goods is up by 2.3% in May even as there is an acute shortage of workers. Surprisingly, orders for aircrafts saw an increase of 27.4 percent in May. April orders were up at 31.5 percent.
4. Dipping Joblessness: Jobless claims fell just 7,000 from the previous week to 411,000, the Labor Department said Thursday. Weekly claims have fallen steadily this year from about 900,000 in January.
5. For Businesses, investment grew at a strong 11.7% rate, better than the previous estimate of 10.8% growth, while government spending increased at a 5.7% rate, slightly below last month’s estimate of a 5.8% gain.
The trade deficit grew in the first quarter, subtracting 1.5 percentage points from growth, as a recovering U.S. economy attracted rising imports while U.S. exporters struggled with weaker overseas demand.