
U.S. Economy Promises Support for California
By Dr. Lynn Reaser, Ph.D., CBE
While not spectacular, national economic growth improved in the second quarter, suggesting a vital “pull” for California.
U.S. real gross domestic product (GDP) expanded at an annualized rate of 2.6% from the prior quarter. This followed the weak 1.2% growth rate posted in the prior quarter, putting the average for the first half of 2017 just shy of the 2.0% that has been the recent trend.
Consumer spending, business investment, and exports provided important support in the spring quarter. This strength was partially offset by some pullback in homebuilding, a further correction in business inventories and weakness in state and local government outlays.
Ongoing gains in jobs, business confidence, improving global prospects, and a weaker dollar should help U.S. real GDP growth reach close to 3.0% in the third quarter, which will be an important force driving California.
