Analysis: The facts are clear. The U.S. economy grew at a 3.0% pace in Q2, shattering economists’ expectations. For those keeping score, nearly three-fourths of the economists surveyed by Bloomberg got it wrong. President Donald J. Trump was right. Could it be true that experts are simply drips under pressure to preform?
The Gross Domestic Product (GDP) jump for the second quarter was better than the 2.3% estimate and reversed a 0.5% decline in the prior period. Consumer spending rose 1.4% in the second quarter, better than the 0.5% in the prior period. While exports declined 1.8% during the period, imports fell 30.3%, reversing a 37.9% surge in Q1.
Press Secretary Karoline Leavitt, in a release Wednesday said, “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!”
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. Said another way, consumer spending growth accelerated as inflation is on a downward track.
Americans’ total real disposable income rose at a strong 3.0% in Q2 after a similarly strong 2.5% increase in the first quarter. Please note that this 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.
Again, for those few readers that may still hold loyalty to the auto-pen regime, in the final two quarters of the previous 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. 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. Automobile output rose at a 33.5% annual rate which is the biggest increase since 2020.
As President Calvin Coolidge said, “the business of America is business” which emphasizes the importance of commerce and economic activity in American life. Yes, capitalism has worked here for 250 years as the American people produce, buy, and sell which fosters prosperity for all classes of people.
The evil expressed in class warfare by Socialist Democrats or Communists like New York’s mayoral primary winner Zohran Mamdani and mayoral candidate Omar Fateh in Minneapolis and Tulsa’s Mayor Monroe Nichols always offers free stuff for everyone thus destroying individual productivity, self-reliance, and real wealth of individuals citizens while enriching bureaucrats, lawyers, and the wealthy elite.
Whatever you do, dear reader, don’t teach this true history or current facts to Tulsa’s Daily Pravda.
President Donald J. Trump has reset common sense in our public life and national business, and, as a result, 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. Finally, both housing starts and permits for new builds rose in June above expectations.
Economic momentum continues. It could even inspire a family fly a bigger flag.
Some pundits agree on America’s success.
Economist E.J. Antoni: “This GDP report, I mean, really, is an absolute blockbuster. It completely defies expectation. It is not only a good headline number, it has good internals, as well.”
Economist Steve Moore: “This is an amazing number … We’re seeing lots of jobs. We’re seeing tame inflation. It is really a beautiful picture … It’s hard to see anything to complain about. I’m sure Democrats will find something they don’t like.”
Bullseye Brief author Adam Johnson: “The GDP Price Index was only 2% and the expectation was 2.2%. In other words, we have an economy growing at 3%; we have inflation at 2%. That’s the best of both words, so I’m very positive on that report.”
Job Creators Network CEO Alfredo Ortiz: “The U.S. economy grew by an annualized 3% in the second quarter of the year—yet another data point that supports an interest rate cut by the Fed. Trump’s three-legged stool is working: balancing trade, cutting taxes, and slashing regulations are creating an economic boom.”
CNBC’s Joe Kernen: “This three percent, with the market at new highs and, really, we haven’t seen inflation go up … none of these ‘horrible things’ have happened.”
USA TODAY columnist Nicole Russell: “Thanks to President Donald Trump’s bold policies, it appears that the United States will avoid a recession this year − one that so many liberals were predicting only months ago. Will Democrats put politics aside and applaud as the American economy shows a strength and resilience that so many of them doubted? Probably not.”
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