US economy surges to 4.1 percent growth rate

America’s economy grows at the fastest pace since 2014, driven by tax cuts and exporters getting in before retaliatory tariffs.

US President Donald Trump tours US Steel's Granite City Works steel mill in Illinois on July 26.

The US economy surged in the April-June quarter, growing at an annual rate of 4.1 percent. That’s the fastest pace since 2014, driven by consumers who began spending their tax cuts and exporters who sought to get their products delivered ahead of retaliatory tariffs.

The Commerce Department reports that the gross domestic product, the country’s total output of goods and services, posted its best showing since a 4.9 percent gain in the third quarter of 2014.

President Donald Trump predicts growth will accelerate under his economic policies. But private forecasters cautioned that the April-June pace is unsustainable because it stems from temporary factors. The rest of the year is likely to see good, but slower growth of around 3 percent.

AP