Trump hails USA economic growth, predicts ‘going to go a…

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But most economists and financial analysts disagree. And Paul Ashworth, chief US economist at Capital Economics, told clients that "there is still little evidence that the tax cuts, or deregulation for that matter, are improving the supply side of the economy".

President Trump is speaking at this moment outside the White House, touting the success, he claims, of his economic policies. From left, Commerce Secretary Wilbur Ross, Trump, Vice President Mike Pence, and Treasury Secretary Steve Mnuchin. The GDP data showed that business capital spending was weaker than had been expected, with equipment purchases less than half of the first quarter and two-fifths of the average rate in 2017.

Many on the left will argue that President Obama had eight quarters of 3 percent GDP growth. But quarterly figures are volatile and strength in one quarter can be reversed in the next. The rest of the year is likely to see good, but slower growth of around 3 percent.

According to the mainstream media, a majority of economists are predicting that the 4.1% growth rate was just a blip so that in the third and fourth quarters of 2018, the growth rate will fall below 3%.

Rep. Erik Paulsen, member of the Ways & Means Committee & Chairman of the Joint Economic Committee, joined Fox News Radio's Guy Benson and Marie Harf to discuss GDP growth.

Trump called the narrowing of the trade deficit "one of the biggest wins in the report".

But the report got another boost from an unusual source: strong exports which leapt 13.3 per cent, driven higher by foreign sales of oil and soybeans, which now face stiff Chinese tariffs.

But on CNN Maya MacGuineas, President of the Committee for a Responsible Federal Budget, pointed out that the economic bump is temporary-and fueled by President Donald Trump's trade war, which may cause long-term damage.

The front-loading of deliveries of soybeans and other goods boosted exports in the second quarter, which grew at their quickest pace in 4-1/2 years, sharply narrowing the trade deficit. Trump may soon have to be satisfied by anything with a three, and perhaps less. Growth reached 5.2 per cent in the third quarter of 2014, before falling back to 2 per cent in the next quarter.

Output expanded 3.1pc in the first half of 2018, putting the economy on track to achieve the Trump administration's target of 3pc annual growth. A measure of domestic demand surged at a 4.3 percent rate in the second quarter.

Friday's report revised the estimate for GDP growth in the first quarter to 2.2%, up from 2%.

TRUMP: "The Canadians you have a totally closed market. they have a 375 per cent tax on dairy products, other than that it's wonderful to deal".

But Trump nevertheless focused on the sudden drop in the USA trade deficit as another triumph for his tough trade policies.

THE FACTS: No, it's not totally closed. Because of the North American Free Trade Agreement, Canada's market is nearly totally open to the United States. Each country has a few products that are still largely protected, such as dairy in Canada and sugar in the United States.

While Friday's report showed the United States economy accelerating, the gains were in line with analyst forecasts - and were not out of proportion with some quarters in previous years.

This article was written by Heather Long, a reporter for The Washington Post.