The US economy is suddenly in expansion mode again, which is a surprise as it was expected to be flat earlier. It is now tracking at 2.4%, according to a CNBC article and poll conducted along with Moody`s. This was a survey of economists. First quarter GDP is announced on 26 April. It was retail sales and export data and business inventories that contributed to the improvement in this growth figure this week.
The survey of economists improved their growth estimates by 0.3 percent to a median 2.4% on Thursday, triggered by a sharp jump in March retail sales. This only means that the US consumer is spending and that other parts of the economy is stronger than expected. The median forecast was under 2% and was at a low of 1% earlier in the quarter. The US economy is improving.
Goldman Sachs economist said that the 2.8% growth level it expected would actually come in the 2nd quarter. Keep in mind that it was Goldman that told the market players – many of whom were calling for a weaker market – that they were wrong. The dovish Fed and strong labor markets will continue to keep the US economy in a strength mode, at least for much of 2019.