Reports recently revealed that the economy of the United States has grown at a rate of 3.1% annually which is the fastest percentage growth seen in the past two years. Although the growth has been dampened during the past months due to the hurricanes that hit the country including Harvey and Irma which has impacted the market in the past months.
However, the economy still performed positively during the quarter due to the growth in corporate businesses as well as the rise in consumer spending which was attributed to be the fastest since two years ago.
The labor market in the country which has been declining in the past quarters has recovered positively well during the quarter with the labor market expanding continuously during the past months.
In August, the U.S. Labor Department reported an additional 156,000 net new jobs. Despite this being considerably lower from the reported 189,000 new jobs back in July and the 210,000 additional jobs in June, the report was still received well by the markets. Most economists also have commented on the strength of the labor market. Currently, economists have forecasted a gross domestic product growth rate of 3%.
The positivity of economists and the markets regarding the economy is also boosted by the recent announcement of the U.S. Federal Reserve of another possible interest rate hike before the end of the year, an outlook which was not expected from the central bank during the past quarter.
Along with the market optimism regarding the economy, the consumer spending in the country has also heightened the bright outlook for the economy this quarter due to the rise in U.S. consumer spending.
According to the Commerce Department, business spending for nondefense American capital goods that led to a surge in shipments for the month of August. Business spending which forms around 12% of the country’s economy has been contributing to growth as well due to the increase in business spending.
Others have also stated that the rise of the manufacturing sector contributed to the growth outlook of the U.S.economy. Other consumer sectors such as orders for durable goods have risen by 1.7% from having previously declined by 6.8% back in July while transportation equipment bookings have grown by 4.9%.
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