Trump Can Thank Mayors, Governors for Providing Jolt to Economy
- Pace of state, local government spending hits three-year high
- Tired of waiting for infrastructure plan, they’re acting alone
Contractors pave a road near Portsmouth, Ohio, on July 26, 2017.
Photographer: Ty Wright/BloombergThis article is for subscribers only.
President Donald Trump has U.S. mayors and governors to thank in part for the swift growth of the economy during the first three months of 2019, when states and cities increased the pace of their spending by the most in three years.
The Commerce Department on Friday said state and local government spending increased at an annual rate of 3.9 percent in the first quarter, the most since the start of 2016, because of a “turnaround in investment, most notably in construction of highways and streets.” That contributed to a better-than-expected jump in the nation’s gross domestic product that Trump was quick to trumpet.