As we are making our way into the second quarter, here's an update on the past few months in the US economy.
The economy has seen a growth of about 2.3%, which is lower than 2.9% from Q4 of 2017. It's still better than what other predicted at 2%. The factors? Mostly consumer spending. People are spending less to levels seen abut 5 years ago. Obviously, it's not just consumer spending. Businesses are also spending less on equipment and capital. The consumer growth fell to 1.1% (usually makes up over 2/3 of US economic activity. Q4 had a 4% growth surge, but of course that was because there was amplified spending after hurricanes last year.
But of course, these is expected to be more growth because the Trump administration's $1.5 trillion tax reforms will trickle down. Let's go Reaganomics!
In March, the central bank raised interest rates because of strong labor force and economy. It's likely it will raise it again this year.
http://www.bbc.com/news/business-43925122
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