The U.S. government issued revised Gross Domestic Product (GDP) numbers Thursday—and they were significantly higher than earlier estimates, bolstering President Trump’s claim that the economy is improving under his leadership.
The news is good:
Gross domestic product—the government’s broad measure of economic output—grew at a 3.8 percent annual rate from April through June in Commerce’s third estimate. That compares with the prior reading of 3.3 percent. Adjusted only for seasonality, not inflation, the economy increased at a six percent pace.
As always seems to be the case, the numbers that economists “expected” were not the same as the numbers that exist in reality:
Economists had expected no change from the earlier estimate. Instead, updated data showed firmer household demand. Consumer spending rose at a 2.5 percent rate, up from the previously reported 1.6 percent. Final sales to private domestic purchasers—a key gauge of underlying demand—advanced 2.9 percent, sharply higher than the earlier 1.9 percent reading.
Poor CNN was forced to admit that the GDP was "significantly stronger than previously reported"; you know they hated typing that. Meanwihle, I love how CNBC anchor Rick Santelli admits, “I’m a bit shocked to be honest!”
Commerce Secretary Howard Lutnick weighed in:
Lutnick explained what he thought was behind the impressive growth:
What’s driving the Trump Economy?
- A manufacturing and software boom across the heartland
- Lower regulation freeing businesses to grow
- Cheap energy powering households & industry
- Petrochemicals & pharmaceuticals strengthening the supply chain
- Research and Development driven by our Tech Industry President Trump’s America First policies added $100B and fueled our extraordinary economic growth.
- The “experts” doubted it. Trump delivered it.
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Big: Fed Drops Federal Funds Rate by .25 Points
As I reported Wednesday, a new Reuters/Ipsos poll shows that Trump and the GOP lead the Democrats in approval ratings on virtually every important issue, from crime to the economy to world conflicts to immigration. On the economy, Trump has a fat 10-point lead:
While the economy has weighed on Trump's approval ratings, poll respondents more often picked the Republican Party over the Democratic Party - 34% to 24% - for managing economic policy.
These new numbers show why; Americans are feeling better about the way things are going than when they faced nine-point inflation under Biden.
This sums up the new numbers:
Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.
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