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Consumer spending boosts US economy

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By Euronews
Consumer spending boosts US economy

<p>Higher consumer spending and business investment has helped to boost the US economy in the second quarter which grew at a rate of 2.6 percent.</p> <p>The rise in second-quarter <span class="caps">GDP</span> was in line with economists’ expectations. President Donald Trump has set an ambitious 3 percent<br /> growth target for 2017.</p> <p>Consumer spending, which makes up more than two-thirds of the US economy, accelerated from the 1.9 per cent growth figure in the first quarter accounting for most of the upsurge.</p> <p>But wage growth remains sluggish fuelling concerns spending may slow in the next quarter.</p> <p>Even though hiring has been consistent and the jobless rate of 4.5 percent is the lowest in almost a decade, a sustained increase in wage growth would help boost consumers’ ability to spend.</p> <p>Trade also added slightly to growth, as exports increased by more than imports during the quarter.</p>