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U.S. economic growth for Q2, consumer spending up

Posted on Wednesday, July 31, 2013 at 9:59:12 AM

More Americans are buying, and consumers are enjoying a period of growth for the U.S. economy. Throughout 2013, confidence in many major markets is improving, and more people are comfortable with auto and residential financing. 

Recent data released by the Commerce Department highlighted an increase in gross domestic product, up at a 1.7 percent annualized rate. The gains are thanks in part to more consumer spending, as well as several other economic factors.

In addition, employment opportunities and home prices have helped buyer confidence, according to Bloomberg. A positive side effect includes more automobile sales and manufacturing. 

"The outlook for the second half is that growth gets stronger as the fiscal drag fades," Harm Bandholz, chief U.S. economist at UniCredit Group in New York, told the news source. "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."

Another factor in overall improvements was residential construction, which grew at a 13.4 percent annualized rate. More confidence in residential financing has helped improve the housing market, aiding economic stability. 

Second quarter gains exceeded expectations across many sectors, including the automotive and housing markets. Hopefully, economic recovery will continue throughout 2013.