When it comes to the prediction about the US economy, then the majority of them said that the country might face another recession soon. Even if such a statement came out from top experts, nothing like that is happening. According to reports, the US economy is booming more than anyone’s expectations, which is surprising for many economists. Before the start of this year, many experts said that the country might not be able to achieve a positive growth rate, but in reality, the reverse happened. The US is managed to grow more than two percent, and for the next two quarters, it might cross this benchmark too.
Currently, the rate of growth for the third quarter has revised by experts from 1.9% to 2.1%. Trump administration got criticism for starting a trade war with China, which has slowed down the whole economy. Even if things didn’t go well with China overall, the US economy has eaten everyone’s expectations.
Major sectors like manufacturing, retail were not performing well, but from the last few months, they have seen an improvement also. Now the business investment in manufacturing plus other significant sectors is increasing, which signals the growth happening shortly. The economists said that they had revised the growth rate after seeing a trade deficit is getting narrowed down, and the growth of significant sectors seems to be quite sure. Business capital spending done by businesses has increased, which means the liquidity problem faced by many companies is going away. Fed cut interest rates continuously for two quarters and likely to do so in the next one. Still, the government has managed to beat everyone’s expectations when it comes to the growth of the nation.