US Q2 GDP growth revised down to 2%

0 Comment(s)Print E-mail Xinhua, August 30, 2019
Adjust font size:
Manhattan midtown is seen shrouded in fog in New York City, the United States, Dec. 14, 2015. [Photo/Xinhua]

Growth of U.S. gross domestic production (GDP) in the second quarter was revised down to 2 percent from an initial estimate of a 2.1-percent pace, the U.S. Department of Commerce said in its second estimate Thursday.

In the first quarter, GDP growth was 3.1 percent.

With regard to specific indicators, investments, exports and government spending were revised lower than previously estimated, while personal consumption was stronger after adjustment.

Imports, which are subtracted in the calculation of GDP, were unrevised, the department said.

The economic expansion is under threat from the U.S. President Donald Trump administration's trade policy uncertainty, with economists warning of a recession in the next one or two years.

Business investment declined 0.6 percent in the second quarter, the GDP report showed, the first contraction since the first quarter of 2016. Private inventories, meanwhile, increased 69 billion U.S. dollars, deducting 0.91 percentage point from GDP growth in the quarter, the data showed.

Federal Reserve Chairman Jerome Powell said Friday at the central bank's annual symposium that fitting trade policy uncertainty into the Fed's policy decision-making framework is "a new challenge," and that monetary policy "cannot provide a settled rulebook for international trade."

Trump has repeatedly criticized the Fed for not having cut the benchmark interest rate enough, suggesting that the Fed cut rates by 100 basis points.

The president has also been expressing frustration over the strong dollar that makes it harder for U.S. exporters to sell their products to overseas markets.

The GDP report showed that the U.S. trade deficit, which Trump vowed to close, instead widened to 982.5 billion dollars in the second quarter compared to the previous estimate. Trade chopped 0.72 percentage point from GDP growth in the second quarter.

Treasury Secretary Steven Mnuchin said Wednesday that the administration won't intervene in the dollar market for the time being.

The third and final estimate will be published on Sept. 26, the department said.

Follow China.org.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter