Consumer and Business Spending
Buoys US Economy for Q2 For the second quarter of 2019, the
U.S. Commerce Department says
the economy's rate increased 2.1%. That's a drop from the 3.1% growth recorded
the first quarter of this current year. Despite the fall, the 2.1% bump is more
than what economists had expected for Q2. According to CNN Business, second quarter growth was supported by strong consumer spending and government spending. Ameriprise Financial's Russell Price,
via CNN Business But some of the reasons for Q2's drop include falling investment in the U.S. housing market. Spending on work structures like
offices and power plants also
fell over 10% from the first quarter. In addition, U.S. exports dropped
just over 5% from 2019's Q1. With the 2.1% growth still beating economic expectations, it remains to be seen whether or not the Federal Reserve ushers in cuts
for interest rates.