Add this to Housing prices on th rise and we have a Economy rising…..
The economy in the U.S. grew more than projected in the second quarter, reflecting an unexpected pickup in inventory building as consumer spending cooled. Growth in the previous three months was revised down.
Gross domestic product, the value of all goods and services produced, rose at a 1.7 percent annualized rate, after a 1.1 percent gain the prior quarter, Commerce Department figures showed today in Washington. The median forecast of 85 economists surveyed by Bloomberg called for a 1 percent advance for last quarter. Consumer spending, the biggest part of the economy, climbed 1.8 percent after increasing 2.3 percent.
Job gains and rising home prices are shoring up Americans’ confidence and lifting automobile sales and production, making it likely the U.S. will pick up once government spending cuts and tax increases pose less of a restraint. The report also showed inflation is falling further below the Federal Reserve’s goal as official wrap up a two-day meeting today to determine whether to trim monthly bond purchases aimed at spurring growth.
“The outlook for the second half is that growth gets stronger as the fiscal drag fades,” said Harm Bandholz, chief U.S. economist at UniCredit Group in New York, who predicted 1.8 percent growth. “We have an economy that’s recovering from almost stagnating in the fourth quarter of last year. The consumer is looking resilient, though a bit weaker.”Share on Facebook