New York City’s economy grew modestly in the second quarter as gross city product (GCP) gained 2.7%, according to an
In the United States, gross domestic product rose 4.1% in the second quarter. This contrasts to GDP growth of 3.0% in the second quarter of last year.
“We must take advantage of our city's strong economy now and set the foundation for long-term growth that lifts everyone up,” Stringer said. “That means linking local residents with good-paying local jobs, bold ideas to make housing more affordable, and thinking outside the box on issues from childcare to transportation.”
Unemployment fell to a historic low of 4.2% in the second quarter with the private sector adding 13,800 jobs in April, May, and June. The analysis showed that less than half of these new jobs were in lower-wage industries. High-wage sectors added 6,000 new jobs, which was the largest gain in two years. In the second quarter of 2017, NYC’s jobless rate was 4.6%.
In the United States, the unemployment rate was 3.9% in the second quarter, compared to 4.3% in the second quarter of 2017.
The banking sector continued to perform strongly as a result of higher interest rates, lower corporate tax rates, and deregulation. Net income after taxes for the top seven banks in the U.S. rose to $30.9 billion in the second quarter, up 16.8% from the second quarter of 2017.
“These numbers are good signs, but there are risks to the continued expansion. Between rising federal deficits and a possible trade war, it is more important than ever to prepare for the future,” Stringer said.
Moody’s Investors Service rates the city’s general obligation bonds Aa2, while S&P Global Ratings and Fitch Ratings rate them AA. All three assign stable outlooks. The city has about $36.7 billion of general obligation debt outstanding.
