The second quarter Gross Domestic Product growth result will be released tomorrow.  The Q2 GDP growth rate is historically the worst quarter of the year.  A growth rate higher than 1.5 percent will be a strong indicator the U.S. economy remains on track for a cumulative year of around three percent.

In the latest economic releases the orders for durable goods “unexpectedly” jumped in June [2 percent], again indicating the overall strength of the U.S. economy and strong consumer purchasing.  Additionally the trade in goods deficit “unexpectedly” declined 1.2 percent in June as more manufacturers “surprisingly” shift production back to the U.S, and domestic consumers are “unexpectedly” loyal to USA.
Every economic indicator is positive, and each series of released data shows the U.S. economy is increasingly strong.  Despite the empirical data, media reporting on economic forecasts continue to convey a negative slant disconnected from what is happening.

WASHINGTON (Reuters) – New orders for key U.S.-made capital goods surged in June, suggesting some improvement in business investment, but economic growth is still expected to have slowed sharply in the second quarter amid weaker exports and a smaller inventory build.

Still, the longest U.S. economic expansion on record remains supported by a strong labor market. Other data on Thursday showed the number of Americans filing claims for unemployment benefits dropped to a three-month low last week.
The economy has been hurt by the U.S.-China trade war and slowing growth overseas. These factors are expected to encourage the Federal Reserve to cut interest rates next Wednesday for the first time in a decade.
The Commerce Department said orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, jumped 1.9% last month after rising 0.3% in May.
Orders for these so-called core capital goods in June increased across the board, with demand for machinery rising by the most in nearly 1-1/2 years. Economists polled by Reuters had forecast core capital goods orders would gain 0.2% in June.
“The stronger-than-expected orders are a positive sign that business investment and manufacturing sector activity have not weakened substantially further following softness earlier in the year,” said Veronica Clark, an economist at Citi in New York.
Core capital goods orders rose 1.9% on a year-on-year basis. Core capital goods shipments, which are used to calculate equipment spending in the government’s gross domestic product measurement, increased 0.6% in June after advancing 0.5% in the prior month.
[…] Overall orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, increased 2.0% in June, the most since August 2018, after declining 2.3% in the prior month. Unfilled orders fell for a second straight month. (read more)



 

Posted in Auto Sector, Big Government, Donald Trump, Economy, media bias, President Trump, Trade Deal, Uncategorized, Union Activity - ALL, US dept of agriculture, US Treasury, USA
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