U.S. economy accelerates in second quarter; hurricanes expected to slow growth
Harvey
WASHINGTON (Reuters) - The U.S. economy expanded a bit faster than previously estimated in the second quarter  recording its quickest rate of growth in more than two years  but the momentum likely slowed in the third quarter due to the impact of  Hurricanes Harvey  and Irma.
âThe destruction caused by  Hurricanes Harvey  and Irma and the resulting disruption ... are expected to be a drag on third-quarter growth â said Jim Baird  chief investment officer at Plante Moran Financial Advisors in Kalamazoo  Michigan. âNonetheless  the economy remains on track.â
Economic growth last quarter was the quickest since the first quarter of 2015 and followed a 1.2 percent pace in the January-March period. Economists estimate that  Harvey  and Irma  which struck Texas and Florida  could cut as much as six-tenths of a percentage point from GDP growth in the third quarter.
 Harvey  was blamed for much of the decline in retail sales  industrial production  homebuilding and home sales in August. Further weakness is anticipated in September because of Irma.
Harvey and Irma continue to impact the labor market and are expected to cut into job growth this month. In a third report  the Labor Department said initial claims for state unemployment benefits increased 12 000 to a seasonally adjusted 272 000 for the week ended Sept. 23.
WASHINGTON (Reuters) - The U.S. economy expanded a bit faster than previously estimated in the second quarter  recording its quickest rate of growth in more than two years  but the momentum likely slowed in the third quarter due to the impact of  Hurricanes  [TGT] and Irma.
âThe destruction caused by  Hurricanes  [TGT] and Irma and the resulting disruption ... are expected to be a drag on third-quarter growth â said Jim Baird  chief investment officer at Plante Moran Financial Advisors in Kalamazoo  Michigan. âNonetheless  the economy remains on track.â
Economic growth last quarter was the quickest since the first quarter of 2015 and followed a 1.2 percent pace in the January-March period. Economists estimate that  Harvey  and Irma  which struck Texas and Florida  could cut as much as six-tenths of a percentage point from GDP growth in the third quarter.
  [TGT] was blamed for much of the decline in retail sales  industrial production  homebuilding and home sales in August. Further weakness is anticipated in September because of Irma.
 [TGT]  and Irma continue to impact the labor market and are expected to cut into job growth this month. In a third report  the Labor Department said initial claims for state unemployment benefits increased 12 000 to a seasonally adjusted 272 000 for the week ended Sept. 23.