GDP bump due to accelerated soybean exports and inventory accumulation

[Roland99]

https://yhoo.it/2LFJnJN

The U.S. economy grew 4.1% in the second quarter, partly due to a burst in soybean and corn exports, according to economists. In May, the latest data available, soybean exports nearly doubled compared to in April. Producers were in a rush to beat tit-for-tat sanctions, soybean exports are up 26% for the year compared to 2017.

In the second quarter, the U.S. recorded an 80% annualized jump in food, feed and beverage exports, mainly from soybeans and corn. Without that surge, exports would have increased 5.3% instead of 9.3%, which means the GDP growth would have been around 3.6%, according to Paul Ashworth, the chief U.S. economist at Capital Economics.

David Rosenberg, the chief economist of Gluskin Sheff, argues trade disputes may play an even bigger role in inflating GDP. “At least half the growth is coming from two trade-related issues — a soybean-led export burst and inventory accumulation. Net these out and we remain near 2%”, he tweeted on Thursday.

[wishstar]

1. The 4.1% is definitely not sustainable- actually Obama had 3 quarters of 4% growth

and Trump's first year in office was lower than Obama's final year in office

[exboyfil]

2. Wonder what that bodes for 3rdQ

Sub 2% just before the election. I got to think they are thinking of ways to pump this sucker up in time.

I have been criticized, but I still think Democrats should defer big purchases until after the election (or least until the 3rdQ ends).

Also I think a theme should start regarding Gorsuch and Kavanaugh being corporate stooges. It is an easy case to make.

[Renew Deal]

3. We all know how bad trade disputes can get.

[Roland99]

5. lol

[thegoose]

4. He's trashing the economy

All these petty disputes and alienating trade partners is going to be a disaster.