U.S. Outlook: Is stronger growth in Q2 sustainable?
We sure got an exciting second-quarter GDP report this week. But before we get too excited, let’s take a closer look at some of the components that make up this important economic indicator. For more on this and other economic developments to watch, see highlights of my weekly economic analysis below, followed by a link to the full U.S. Outlook report, delivered on Aug. 1, 2014. Key observations:
- Did private inventory growth skew Q2 growth?
- Real consumer spending, which rose 2.5% in Q2, is a reason for optimism.
- The latest price inflation data should please Fed Chair Janet Yellen.
- The pieces of the puzzle appear to be falling into place for sustained U.S. economic growth.
- The widening US trade deficit may be a positive sign for the economy.