The U.S. economy grew 0.1 percentage points slower in the second quarter of 2019 than originally estimated, according to data released Thursday by the Commerce Department.
The department’s Bureau of Economic Analysis (BEA) revised U.S. gross domestic product (GDP) growth between the period from April to June to 2 percent, 0.1 percentage points less than the initial estimate of 2.1 percent released in July.
Revisions to growth estimates occur throughout the year, and the BEA is set to release a final estimate of second-quarter growth in September. The latest revision is relatively small in magnitude but reinforces concerns that the strong U.S. economy is beginning to slow under the weight of global headwinds and President Trump‘s trade policies.The U.S has enjoyed unemployment near historic lows, steady growth and rising wages throughout Trump’s term. But there are rising fears that the decadelong stretch of prosperity could end within a year amid a souring economic outlook.
While the U.S. economy has remained strong overall, business investment and manufacturing activity have seen sharp downturns amid the mounting costs of Trump’s trade battles with China and Europe. Economic retractions in the U.K. and Germany, slowing growth in China and an array of geopolitical flashpoints have also hurt the global economy.
The rising fears of a recession pose sharp political risks for Trump, who is counting on a strong economy to woo voters in swing states crucial to his 2020 reelection bid.
More voters for the first time say the U.S. economy is getting worse than say it is getting better since Trump’s election, according to a survey from Quinnipiac University Poll released Wednesday. Forty-one percent of respondents blamed the president’s policies for damaging the economy, the highest level since Trump took office.
Trump has downplayed fears about a slowing economy, accusing Democrats of attempting to sabotage his reelection and blaming the Federal Reserve for withholding stimulus efforts.
“The Economy is doing GREAT, with tremendous upside potential! If the Fed would do what they should, we are a Rocket upward!” Trump tweeted Thursday.