“Today’s GDP growth exceeded market projections, and consumer confidence saw an uptick yesterday. This reflects the American public’s trust in President Trump’s America First economic strategy, which consistently proves the so-called ‘experts’ wrong. Through his efforts, President Trump has diminished our dependency on foreign goods, ramped up domestic investment, and generated thousands of jobs — fulfilling his promise to Make America Wealthy Again. The evidence is indisputable. It’s high time for ‘too late’ Powell to lower interest rates!” — Press Secretary Karoline Leavitt
Key Takeaways:
- The “experts” missed the mark (again). The U.S. economy recorded a 3.0% growth rate in Q2, far exceeding economists’ predictions — nearly three-quarters of those surveyed by Bloomberg got it wrong.
- Consumer spending is picking up as inflation stabilizes.
- Real consumer spending growth jumped from Q1 (+0.5%) to Q2 (+1.4%).
- The Personal Consumption Expenditures Price Index (PCE), the Federal Reserve’s preferred gauge of inflation, rose by just 2.1% in Q2, down from 3.7% the previous quarter. Core PCE also saw a decline, increasing by 2.5% compared to 3.5% last quarter.
- Americans’ total real disposable income experienced a robust 3.0% increase in Q2, following a solid 2.5% rise in Q1.
- Private sector growth takes the lead. Federal government spending has decreased for two consecutive quarters, while real business fixed investment climbed by 1.9% after a surge in the first quarter.
- In the last two quarters of the Biden Administration, real business fixed investment grew at a meager average of 0.5%, compared to a vibrant 6.1% during the first two quarters of the Trump Administration.
- Trump’s Made in America initiative shows results. President Trump is successfully reducing dependence on foreign products, increasing U.S. investment, and generating jobs while securing unprecedented trade agreements.
- Auto production surged at an annual rate of 35.5%, marking the largest increase since 2020, as President Trump revitalizes the American auto industry and fosters domestic manufacturing.
- Manufacturing output has risen by 1.8% in the first five months of President Trump’s second term, a stark contrast to the -0.7% decline observed in the final five months before his inauguration.
- The economic momentum is unabated, consistently defying expectations.
