Published 18:10 IST, October 30th 2019
US real GDP growth slows down to 2%, may further decline
The latest data shared by the US Commerce Department indicated a further slowdown in country’s economy as the real GDP growth slowed to 2% in second quarter.
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The latest data shared by the US Commerce Department indicated a further slowdown in country’s economy as the real GDP growth slowed to 2.0 per cent in the second quarter, from 3.1 per cent in the first quarter. According to the U.S. Bureau of Economic Analysis, the real value added (RVA) by most of the industries plummeted in the second quarter.
Leading contributor to the deceleration
Finance and insurance industry group was the leading contributor to the deceleration which increased at a meagre 2 per cent after it increased at 20.9 per cent in the first quarter. Retail trade increased by 0.2 per cent while it grew at 8.8 per cent in the earlier quarter, becoming the second leading contributor to the deceleration.
Retail and mining
The agency primarily attributed the deceleration to a slowdown in other retail, including gasoline stations, building material and garden equipment and supplies dealers. Mining also showed some deceleration but was the leading contributor to the economic growth of the United States with a 23.5 per cent increase in the RVA.
Historic #deregulation has renewed the U.S. mining industry, as promised by @realDonaldTrump. Mining output grew 23.5% in Q2 after increasing 26.0% in Q1--including an increase in #shale oil drilling--boosting America's oil production. https://t.co/cXDfnJtceM
— Sec. Wilbur Ross (@SecretaryRoss) October 29, 2019
Hopeful after the truce with China
The slowdown has hampered the ambition of the White House to achieve a 3.0 per cent annual growth. But the truce with China after a prolonged trade war can provide confidence to the businesses. The United States Trade Representative (USTR) is considering to extend certain exclusions from additional tariffs for up to 12 months on $34 billion of Chinese imports. The current exclusions, granted last year, are set to expire on December 28, 2019.
The U.S. Trade Representative, in a statement, said that it will commence a process on November 1 for such consideration. “The period for submitting comments will run from November 1, 2019, to November 30, 2019,” said the USTR. Earlier on October 25, the USTR had also said that both the countries are ‘close to finalising’ on some parts of a “mini deal” announced by US President Donald Trump.
16:12 IST, October 30th 2019