The U.S. trade deficit dropped in May which is causing Wall Street firms to increase GDP growth estimates for the second quarter. Macroeconomic Advisers raised its forecast to 5.3%. They have one of the most detailed forecasts.
Others are also increasing their estimates to 4.5% to 5%.
* Consumer spending is strong with a strong job market and tax cuts.
* Business investment has been strong with the tax cuts
* the US trade deficit has been smaller than expected.
Economists doubt the strong growth can last. Most predict GDP will slow in 2019 and 2020.
The US dollar is surging at the same time.
The US dollar hit a record high against the Indian Rupee. US dollar is at 69 Rupees.
The US dollar is at 6.62 to the China yuan.
Both the booming and trade war threats are causing the US dollar to strengthen.