The U.S. economy slowed in the spring but continues to grow at a healthy pace that shows little sign of a recession.
The U.S. economy expanded at a 2.1% annual rate from April through June, the U.S. Commerce Department said, a downgrade from the first quarter's surprisingly strong 3.1% pace.
Consumer spending drives the bulk of U.S. growth and that remains strong even though business expenditures turned negative in the spring for the first time since early 2016. Many executives blamed uncertainty around President Donald Trump's trade war for their hesitancy to spend as much as they did a year ago.
Trump has promised his policies will achieve above 3% growth for years to come. Last year, he nearly achieved that goal with an official growth rate of 2.9%. Trump has boosted the economy with an unprecedented amount of stimulus at a time when unemployment is very low. He beefed up military and domestic spending, scaled back regulations and enacted the largest corporate tax cut in the country's history.
The nation is in the midst of the longest expansion in U.S. history, growing for more than a decade and exceeding even the 1990s boom. While some have questioned how much longer the expansion can last, it is showing little sign of weakness so far. Most experts say it will take a major event of some sort to knock the economy off course.