Trump Spurs Economic Boom, Surpasses Expectations

"Today, GDP growth came in above market expectations, and yesterday, consumer confidence rose. Americans trust in President Trump's America First economic agenda that continues to prove the so-called 'experts' wrong. President Trump has reduced America's reliance on foreign products, boosted investment in the US, and created thousands of jobs - delivering on his promise to Make America Wealthy Again. The data is clear, and there are no more excuses - now is the time for 'too late' Powell to cut the rates!" - Press Secretary Karoline Leavitt

Here's what you need to know:

• The so-called "experts" were wrong (again). The U.S. economy grew at a 3.0% pace in Q2, shattering economists' expectations - with nearly three-fourths of the economists surveyed by Bloomberg getting it wrong.
• Consumer spending growth accelerated as inflation remains right on track.
  • Real consumer spending growth rose from Q1 (+0.5%) to Q2 (+1.4%).
  • The Personal Consumption Expenditures Price Index (PCE) - the Fed's preferred measure of inflation - rose by just 2.1% in Q2, down from 3.7% last quarter - while core PCE rose by 2.5%, down from 3.5% last quarter.
  • Americans' total real disposable income rose at a strong 3.0% in Q2 after a similarly strong 2.5% increase in the first quarter.
• Growth is being driven by the private sector - not the government. Federal government spending fell for the second straight quarter, while real business fixed investment rose by 1.9% following its first quarter surge.
  • In the final two quarters of the Biden Administration, real business fixed investment rose at an average pace of just 0.5% - compared to 6.1% in the first two quarters of the Trump Administration.
• President Trump's Made in America agenda is working. President Trump is reducing our reliance on foreign products, boosting U.S. investment, and creating jobs as he secures the biggest trade deals in history.
  • Auto output rose at a 35.5% annual rate - the biggest increase since 2020 - as President Trump revitalizes the American auto industry and encourages domestic production.
  • Manufacturing output has surged 1.8% in the first five months of President Trump's second term after a -0.7% decline in the final five months before President Trump's inauguration.
• Economic momentum continues to build, defying expectations at every turn.
  • For five straight months, core inflation has come in below market expectations and remains right in line with the Fed's inflation target.
  • In June, consumer spending and industrial production beat expectations, while jobless claims have fallen for six weeks in a row.
  • Customs and tariff revenues have totaled $150+ billion in President Trump's second term - leading to the first June budget surplus in nearly a decade.