Most economists did not expect the growth that the U.S. encountered this second quarter. The growth during the second quarter is the quickest growing growth level in over two years. There are a few signs that the movement is sustained at the start of the third quarter.
Gross domestic product or GDP is up 3.0 percent during the April-June period. This upward growth number was revised from the 2.6% number that was expected a month prior. This reflects the large amount of consumer spending and equally large business investment.
The sales from the retail sector as while as the business spending appear to show that the economy will hopefully maintain its level of stamina this early in the third quarter. The impact of growth from Hurricane Harvey is minimal compared to the estimates.
Gus Faucher, the chief economist at PNC Financial Services in Pittsburgh stated “the impact on the national economy will be minor. While some output will be lost in the wake of the storm, most of the difference will be made up in the months ahead.”
The estimates for growth in the third quarter have been as high as 3.4%. Other data shows that private employers have ramped up their hiring this month in August. 237,000 jobs have been added to payroll, which is up from 201,000 jobs in the month of July.
The ADP National Employment Report was released right before the highly anticipated government’s more comprehensive report on employment. It is expected to show a high level of job gains for the month of August and a lowered rate of labor market slack.
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In regard to the dollar, it rose up against a large number of other currencies while prices for U.S. treasuries dropped. The stocks on Wall Street were trading at a higher level than previously noted. Strong growth is expected to continue in the following months.