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Confident Consumers Power Up The Economy

Published 2018-06-19, 11:17 a/m

investing.com - Economic growth is exploding.
After growing at a surprisingly weak rate of 2.2% in the first quarter, the economy will grow by 4.8% in the second quarter, according to the Atlanta Federal Re serve's mid-June forecast.
If so, that would be the best quarterly performance in four years.
Economists say the big difference is consumer spending. A good reflection of that was the 0.8% increase in retail sales in May. Overall, sales are up 5.9% from a year ago.
What's more, the spending is broad-based, on everything from home improvement to clothing to restaurants and bars.
Economists say Americans are feeling confident because jobs are plentiful and home prices are surging.
Consumers also have more money in their pockets, thanks to the Trump administration's tax cut of late 2017.
Economists now expect the economy to grow by 3% or more in 2018. Such growth is rare. The last time that happened was 13 years ago.

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