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Macroeconomic outlook report: USA

Second quarter of 2017

In the second quarter of 2017 US GDP expanded by 0.21 p.p. with respect to the previous quarter, registering a y/y growth rate of 2.21%. This behavior is explained by an increase in the growth rate of domestic demand. During 2Q17, the unemployment rate decreased when compared to the previous quarter, standing at a rate of 4.30%. The US dollar depreciated against the euro, from 1.06 $/€ in 1Q17 to 1.10 $/€ in 2Q17. Finally, inflation decreased in 2Q17 to 1.91%.

Macroeconomic overview

  • US GDP registered an increase in its y/y growth rate during the second quarter of 2017, up to 2.21%, 0.21 p.p. higher than the rate recorded in 1Q17. This behaviour is driven by an increase in the y/y growth rate of domestic demand, which compensated for the reduction of external demand. OECD forecasts place the growth rate of US GDP at 2.14% in 2017 and at 2.38% in 2018.
  • In the second quarter of the year, domestic demand experienced an increase in its y/y growth rate, from 2.14% to 2.35%. This acceleration was due to higher private investment growth and the stabilization of government consumption growth compared to the previous quarter, which offset the deceleration of private consumption.
  • The unemployment rate decreased by 0.40 p.p. in quarterly terms, standing at 4.30% in 2Q17. The y/y growth rate of employment increased by 0.29 p.p. in this period, up to 1.34%.
  • During 2Q17, the US dollar registered a depreciation of 0.04 $/€ when compared to the previous quarter, standing at an exchange rate of 1.10 $/€ in 2Q17. This depreciation of the dollar partly reflected growing uncertainty about the fiscal policy of the new Government.
  • Inflation decreased by 0.66 p.p. when compared to 1Q17, reaching a rate of 1.91%. Price growth decreased among most expenditure categories in 2Q17, with energy prices leading the reduction.

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© GMS Management Solutions, S.L., 2018. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.