2nd Quarter GDP Growth 3.3% Annual Rate

The revised second quarter growth rate was a very healthy annualized rate of 3.3%. The rate for July was 1.9%.

90% of the growth in the 2nd quarter was due to exports. This goes far toward showing why free trade is a good thing for America. We are very able to compete on the world markets. Exports increased in the second quarter at a 13.2% annual rate. The U. S. trade deficit fell to its lowest level in 8 years as a result. In comparison, the economies of Japan and Germany shrank in the 2nd quarter. Corporate profits in the U.S. were 7% lower than they were in the same quarter a year ago, however. U.S. GDP growth in the third quarter is predicted to be a slower 1.5%, but the predictions lately have been systematically on the low side.