Donald Trump points to the sky, evidently referring to the movement of the American economy as the US GDP in the second quarter is up to 4.2%, higher than the analysts' predictions of + 4.0%.
What are the reasons for such an uptick in the American economy?
• Tax cuts through the tax reform
• Great leap forward in exports (net export contributions from 1.06% to 1.117%)
• Consumption rose by 3.8%
According to Antonio Cesarano, Chief Global Strategist of Intermonte SIM, the increase in net exports and therefore increase in exports is due to prepaid duties. This could also occur in the current quarter with the additional tariffs of 25% on $200 billion imposed by the US on products imported from China.
Meanwhile the S & P500 continues moving upwards, ever closer to the threshold 3000 which in my opinion will be reached without many problems.
Article prepared by Riccardo Zago.