U.S. Outlook: Q2 GDP is solid; trade a growing downside risk
Real GDP increased at a slower annual rate of 2.0% in the first quarter of 2018, according to the third estimate from the Bureau of Economic Analysis.
Now that we have the final Q1 GDP data in hand, what does it mean for the U.S. outlook going forward?
For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on June 29.Key observations:
- The 2.0% Q1 growth rate is a vast improvement over the U.S. economy’s performance in the first quarter of 2016 and 2017, when GDP grew 0.6% and 1.2%, respectively.
- Recent stronger-than-expected economic data has caused us to revise up our forecast for Q2 GDP growth to a sizzing 4.4%.
- Our forecast calls for real GDP growth to moderate to 2.7% for the balance of 2018.
- What could go wrong with this Goldilocks forecast, you ask? A full-blown multilateral trade war.