The US economy, ailing more often than not lately because of trade disputes and other similar issues, has experienced a small sliver of hope through what appears to be a strong third quarter. This is thanks to US retail sales largely in the sectors of household goods like clothing, as well as families or individuals buying more motor vehicles.
Jim Baird, Plante Moran Financial Advisors group chief investment officer, spoke about the robust growth. According to Reuters, he praised the economy's drive and said it appears to be destined for more growth. Aside from that, he also added that buyers are important to this growth and that they will continue to push for it, unknowingly, helping the economy through these lean times for the economy.
There are other factors driving this growth. Domestic demand keeps the drive going, enabling the Federal Reserve to keep raising interest rates in spite of problems affecting new and emerging markets from rising-this because of the crises affecting Turkey and disputes with China and other countries. Manufacturing held steadily, churning out unexpected norms in output and productivity through the second quarter and beyond, as is predicted.
Atlanta Fed's GDP Now forecast, meanwhile, held the belief that the economy will hold steady to produce a growth of 4.7 percent. Even while July's reading, 58.1 percent, was well below expectations of 59.5, the economic think tank actually said it would show through "real consumer spending and real private fixed investment." These factors helped the GDP hold and are now becoming a main driving force behind it.
There will always be skeptics to this outlook, CNBC reports. Even as President Donald Trump held the unshakeable belief that the economy would still rise "a lot higher," these economists think that the trackers often start like it is doing right now. It would flat out in the end, just as it happened in the first quarter, where it posted ratings of 5.4 percent growth early on, only to flat out at around 2.2 near the end of it.
While manufacturing posted good ratings, that doesn't mean trade disputes aren't affecting it anymore. There had been complaints about materials being costlier than normal and supply chains lacking essential resources. Congress had warned time and again of these factors affecting the GDP, but the Trump administration seems bent on holding on to favoring protectionist laws in favor of the global trade.
While the administration's current policy is holding a smooth trade from happening with China, the European Union, and even border neighbors Mexico and Canada, a boorish economic forecast would remain constantly clouded by doubt, despite positive surprises.
