Trump tax cuts boost US economic growth to its highest level since 2014
The US economy grew at its fastest rate for nearly four years in the second quarter of the year, fuelled in part by rising spending, investment and exports.
Gross domestic product increased by 4.2 per cent between April and June, the US Commerce Department confirmed today.
It left the figures unrevised from an estimate published by the department a month ago.
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It represents the fastest increase in GDP since the third quarter of 2014, and is almost double the 2.2 per cent growth recorded in the beginning of 2018.
President Donald Trump’s tax $1.5 trillion (£1.1 trillion) tax cut provided a boon to consumer spending.
Growth was also impacted by falling imports, a rise in government spending, and an increase in corporate profits from 1.2 per cent to 3.0 per cent.
The US Federal Reserve yesterday increased interest rates, reaffirming economic growth and strong employment.
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The benchmark rose by a quarter of a percent to a range of between two per cent and 2.25 per cent. It is expected to be increased further later this year.