February 2019 Economic Recap
The U.S. economy grew by 2.4% in the fourth quarter of 2018, finishing off a strong year with an average growth rate of 2.9%. The growth stemmed from personal consumption expenditures, nonresidential fixed investment, and exports, but was pulled down by residential fixed investment and imports. Despite a relatively strong rate of growth, the overall trend is negative, with growth down from 4.2% in the second quarter.
Meanwhile, President Trump declared a national emergency on the southern border wall with Mexico. The declaration will force as much as $6.7 billion allocated for other purposes to be redirected to border security. Congress is likely to pass a proposal to end the emergency today, which could lead President Trump to use his veto power for the first time in his presidency so far.
With respect to trade negotiations, President Trump announced a delay in resetting tariffs on Chinese goods, citing significant progress in talks with Chinese officials. Despite concessions by the Chinese government, President Trump insists protection for intellectual property must be included in order for a deal to be made.
For a deeper consideration of the economic data released during February, please follow the links below: