US economic growth remained robust, at an annual pace of 2.5 per cent during the fourth quarter of 2017, and the US economy is essentially at full employment, with the jobless rate at a 17-year low. Wage growth has also edged up in recent months. Meanwhile, US business confidence remains high.
And increases in government spending legislated in February are likely to provide a further boost in the next couple of years. The US economic picture still has upside potential. The current expansion could create a virtuous circle, triggering “animal spirits” among businesses and consumers and driving even faster growth than expected.