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Showing posts with the label 2nd quarter gdp

GDP Rises and Consumer Confidence Recovers

The Bureau of Economic Analysis released optimistic data showing a Gross Domestic Product (GDP) increase of 4.2% in the output of goods and services. The new numbers are a windfall compared to the previous 2.1% decline in the first quarter of 2014. The new release of information uses more accurate numbers than previous measurements which help the business community make investment decisions. The new numbers show an increase in nonresidential fixed investments with smaller numbers in private inventory investment. Other factors influencing the higher numbers were exports, personal consumption expenditures, local government spending, and residential fixed investments. Confidence in the economy may be encouraging purchasing behaviors, state spending, and business investments. Consumer confidence and consumer spending are associated in economic theory (Ludvigson, 2004). As consumers become more confident about their employment prospects and ability to earn a living wage they wi