Tipsheet

'The Trump Effect': White House Responds to New Economic Data

The U.S. economy grew faster than expected in the second quarter, with a third estimate showing GDP increased at a 3.8 percent seasonally and inflation-adjusted annual rate, according to government data.

"The U.S. economy grew at a strong 3.8%—far better than the initial 3.3% estimate," the Commerce Department wrote on X. "Despite the media’s continued doubt and spin, the results are clear: President Trump’s pro-growth, America First policies are driving real success for American workers, businesses, and families."

The Bureau of Economic Analysis explained the increase in real GDP reflects a "decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports." 

Additional data released Thursday show durable goods orders in the month of August beat expectations, increasing by 2.9 percent.

Economists had expected durable goods orders to decrease by 0.5 percent compared to the 2.8 percent slump that had been reported for the previous month.

The unexpected surge by durable goods orders largely reflected a substantial rebound by orders for transportation equipment, which spike by 7.9 percent in August after plunging by 9.4 percent in July.

Orders for defense aircraft and parts skyrocketed by 50.1 in August after rising by 0.6 percent in July, while orders for non-defense aircraft and parts soared by 21.6 percent in August after plummeting by 31.5 percent in July. (Nasdaq)

"Thursday's positive economic indicators demonstrate America's small business backbone is strong and getting stronger," said Job Creators Network CEO Alfredo Ortiz. "Economic growth in the second quarter was revised up to nearly 4%, and durable goods orders smashed expectations. These numbers reflect a robust underlying economy that is being powered by Republican tax cuts, including pro-growth provisions such as permanent 100% immediate expensing and the 20% small business deduction."