ADVERTISEMENT
ADVERTISEMENT

Consumer spending propels economic growth in the 2nd quarter — but by less than expected

Consumers most likely did much of the heavy lifting by increasing their spending.

null

Stronger consumer spending accelerated the US economy in the second quarter, according to the Commerce Department's first estimate of gross domestic product released Friday.

This preliminary report, based on incomplete data, showed that GDP increased by 2.6%, signaling that the growth slowdown in the first three months of this year was temporary.

It was forecast to show that economic growth rose at a 2.7% pace, according to Bloomberg. Growth in the first quarter was revised down to 1.2% from 1.4%.

Consumers did much of the heavy lifting in Q2 by increasing their spending, helped by a steady labor market. Personal consumption, which makes the biggest contribution to growth, rose by 2.8% as economists had expected.

ADVERTISEMENT

Business spending, characterized as nonresidential fixed investment, also made a positive contribution to growth, as it increased by 5.2%. But spending on housing investment was notably weak, declining by 6.8%. The National Association of Homebuilders has repeatedly said land and labor shortages are limiting the pace of construction, even as the nation faces a shortage of affordable housing.

The Commerce Department also released its annual revisions of the past two years' worth of GDP data. It showed that growth averaged a 2.2% pace from 2014 to 2016, up from 2.1%.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Here's everything to know about being a virgin on your wedding night

Here's everything to know about being a virgin on your wedding night

7 do's and don’ts of the Holy month of Ramadan

7 do's and don’ts of the Holy month of Ramadan

Top 5 sweetest celebrity mother-child relationships that stand out for us

Top 5 sweetest celebrity mother-child relationships that stand out for us

International Women's Day: 5 Nigerian female celebrities championing women’s rights

International Women's Day: 5 Nigerian female celebrities championing women’s rights

Top 5 female directors in Nollywood

Top 5 female directors in Nollywood

6 things that will break a Muslim's fast during Ramadan

6 things that will break a Muslim's fast during Ramadan

5 benefits of fasting during Ramadan

5 benefits of fasting during Ramadan

5 reasons Easter was more fun when we were children

5 reasons Easter was more fun when we were children

Dos and don’ts of supporting Muslims during Ramadan

Dos and don’ts of supporting Muslims during Ramadan

ADVERTISEMENT
ADVERTISEMENT