The government recently revised its economic growth data for the second quarter, showing a .1% increase from 3% to 3.1% growth.
Analysts attribute the slight uptick to surpluses in the farming industry, with gross national inventories increasing in value by about $5.5 billion. The production of unsold goods such as crops or other products adds to GDP, increasing growth projections.
Other aspects of the economy stayed roughly the same. Consumer spending held steady at 3.3% while business investment in structures rose from 6.2% to 7%. Exports were revised downward slightly to 3.5% and imports advanced 1.5%. Other key figures, such as inflation, showed little movement.
Eight years into its recovery, the US economy expanded at its fastest clip in two years this past spring. Consumers have laid the foundation for steady growth with higher spending, while businesses have chipped in by investing more. Strong profits, especially internationally, have cushioned the process.
“Growth was particularly strong in key regions of North America and Europe, where we grew sales greater than twice [the] GDP, as well as throughout Asia-Pacific,” Dow Chief Executive Officer Andrew Liveris said on a conference call to discuss quarterly profits of $1.3 billion, which surpassed analysts’ expectations.
A weak dollar has helped, as well.
The momentum of the past three months should continue, with the dollar remaining weak and global economies continuing to expand.
“The dollar is going to contribute again in the third quarter,” said Walter “Bucky” Hellwig, a senior vice president at BB&T Wealth Management.
While the US is expected to continue expanding at the steady 2% rate it has been, on average, since the Great Recession, analysts warn that, historically, that rate is slow for a recovery. Generally, growth rates following a recession have been up around 3%.
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