CNBC reports that, according to Reuters, the US Q2 GDP is up 3.1%. This is quite significant, as The Wall Street Journal had previously estimated that the GDP would continue at a steady rate of 3% and rise no higher. There are many factors that contributed to this increased level of growth, such as an improving stock market and steady job growth. These two factors allowed families to spend more and, in turn, contribute money to the retail sector.
However, according to experts, it could have been an even better quarter if not for the impacts of storms such as the devastating Hurricane Irma and Hurricane Harvey. These storms, which hit some areas that provide industrial production and home sales, delayed further growth and made it more difficult for individuals to buy goods and for businesses to sell goods. However, there is a silver lining. The business associated with rebuilding the affected areas is predicted to help boost the GDP later this year and into 2018.
In regards to future growth, the state of predictions is still rather unpredictable. This week, President Donald Trump proposed a tax overhaul that plans to lower the corporate income tax to only 20% and other changes to business taxes. While Trump believes that this will help boost the economy, it is unclear how the President will accomplish the tax plan without raising the debt ceiling and adding to the national deficit.
Lastly, it is unknown whether factors that have been slowing growth will continue to do so. For example, the housing market decreased growth by 0.3% this quarter, possibly due to the aforementioned natural disasters as well as general changes in consumer behavior. In addition, corporate taxes were also set to increase by 0.8%, but this did not occur. Instead, they only increased by a meager 0.1% rate. While it is quite difficult to predict future growth at this point, it is still estimated that the GDP will continue to increase, but at what rate is unknown.