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Second Quarter Sees 3% Growth – Approaching ‘Robust’

<p>Revised data from the Department of Commerce shows a 3&percnt; growth in GDP for the second quarter &lpar;April-June&rpar;&period; This is a serious increase from the measly 1&period;2&percnt; growth we saw during Q1 and is the strongest we&rsquo&semi;ve seen since the beginning of 2015 when growth hit 3&period;2&percnt;&period;&nbsp&semi;<&sol;p>&NewLine;<p>It&rsquo&semi;s also exactly what Trump promised us on the campaign trail&period;&nbsp&semi;<&sol;p>&NewLine;<p>Data also shows a strong increase in personal consumption&comma; which indicates a widespread feeling of financial security&comma; and an increase in nonresidential fixed investment&comma; which suggests bullishness on the business side&period; Imports also increased&period;&nbsp&semi;<&sol;p>&NewLine;<p>These increases were partially offset by major decreases in state and local government spending&period; &nbsp&semi;<&sol;p>&NewLine;<p>In general&comma; 2-3&percnt; growth is considered &ldquo&semi;robust&rdquo&semi; and is the target&period; Anything over 4&percnt; is too hot&comma; possibly inflationary and definitely unstable&period; Below 2&percnt; is anemic and 0&percnt; or negative is considered a recession&period; A prolonged recession is a depression&period;&nbsp&semi;<&sol;p>&NewLine;<p>A single quarter of strong growth doesn&rsquo&semi;t mean we&rsquo&semi;ll reach an average of 3&percnt; for the entire year&comma; and we can expect damage from Hurricane Harvey to temper growth in Q3&period;&nbsp&semi;<&sol;p>&NewLine;<p>Trump has promised to hit 4&percnt; or better&period;<&sol;p>&NewLine;<p>Moody&rsquo&semi;s Analytics economist Mark Zandi predicts a 2&period;1&percnt; average growth for 2017&period; &ldquo&semi;For the first time since the Great Recession ended in mid-2009&comma; the economy is not facing any significant headwinds&comma;&rdquo&semi; says Zandi&period;<&sol;p>&NewLine;<p>Either way&comma; we&rsquo&semi;re on track to improve from 2016&rsquo&semi;s paltry 1&period;5&percnt; average growth&period;&nbsp&semi;<&sol;p>&NewLine;<p>&nbsp&semi;<&sol;p>&NewLine;

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