A closer look at the drivers behind the growth showed an increase in both consumer and business spending, as well as increases in exports and government spending. Furthermore, personal consumption expenditures increased by 4%, business investment grew by 7.3% and federal government outlays increased by 3.5%.
In addition to government spending, the Trump administration used a mix of tax cuts and deregulation to help spurn growth. In terms of the biggest impact, White House budget director Mick Mulvaney told CNBC earlier this week that deregulation was key, making companies feel more at ease when it came to committing capital.
“During each of two previous administrations, we averaged just over 1.8 percent GDP growth. By contrast, we are now on track to hit an average GDP annual growth of over 3 percent, and it could be substantially over 3 percent,” said Trump. “Each point, by the way, means approximately $3 trillion and 10 million jobs.”
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