The US economy grew at an annual rate of 3.1 percent in the second quarter of 2017, the highest since early 2017 and up from the previous 3 percent, the government reported today.
The Commerce Department today released its third and definitive estimate of the evolution of Gross Domestic Product (GDP) between April and June.
The growth of 3.1% in the second quarter was in line with analysts’ forecasts and was an improvement over previous estimates of 3% and 2.6%.
In addition, GDP growth between April and June far surpassed 1.2% in the first quarter and is in line with President Donald Trump’s goal of making the economy grow again at an annual rate of between 3% and 4%.
According to the report released today, consumer spending, which accounts for two thirds of US economic activity, rose between April and June by 3.3%, unchanged from the previous estimate.
The national economy has had 11 consecutive years of annual GDP growth of less than 3% and in 2016 grew by only 1.6%, the lowest rate since 2011.
Trump wants to stimulate the economy with an ambitious plan that would mean the country’s biggest tax reform in decades and cut taxes on corporations and many Americans.
From Indianapolis, Trump revealed details of his plan to “simplify and make fairer” the US tax code and accelerate the country’s economic growth.
The proposal, released jointly by the White House and Republican leaders of Congress, cuts the tax rate for companies from 35% to 20% and simplifies individual income tax payment categories by reducing them from the current seven to three: of 12%, of 25% and of 35%.