Business: US economy grows more than expected

The US economy grew more than expected in spring. In the second quarter, the gross domestic product (GDP) rose to the previous quarter of 3.8 percent, as the Ministry of Commerce announced in a third estimate in Washington. On the other hand, economists had expected an average of 3.3 percent confirmation of the second estimate of 3.3 percent.

According to Ministry of Commerce, the reason for the increase was a decline in imports and an increase in consumer expenses. At the same time, investments and exports shrank.

In the first quarter, the American economy had shrunk by 0.6 percent. This was also due to advanced effects, since many companies used the time to import increased in view of the US tariffs under the same time under President Donald Trump.

In the United States, the data for economic growth is published. This method is dispensed with in Europe, which is why the numbers are not directly comparable. To get a growth rate compared to Europe, you would have to share the US rate by four.

Despite the surprisingly strong economic growth, the labor market in the United States had recently been weakened. So significantly fewer places were created than expected. This is also why the US Federal Reserve Fed recently reduced the key interest rate for the first time since December. This is now in a range of 4.0 to 4.25 percent.

With the interest in the interest rate, the Fed tries to find a compromise solution for the risks on the labor market with increasing inflation. Fed President Jerome Powell warned that higher tariffs have started to raise prices in some groups of goods. The new Fed governor and Trump confidante Stephen Miran, on the other hand, said that he did not see any inflation pressure through Trump’s Importums.