The U.S. economy may have a blockbuster start to the year, thanks to tax reform. According to some economists, the tax reforn could spark higher consumer spending and capital investments.
U.S. gross domestic product (GDS) is expected to surge to 4.0 percent in the first quarter, according to the latest forecast from the Atlanta Federal Reserve. If the forecast holds, it will be the best quarter since the third quarter of 2014.
ButtonThe economy ramped up last year and hit the administration’s 3 percent growth target In the second and third quarters of 2017. But then it slid to 2.6 percent in the last quarter.
Economists’ explanation for the sudden increase in the first quarter forecast was strong manufacturing and construction spending data. The ISM Manufacturing Index was little changed at 59.1 percent in january, beating expectations.