U.S. Outlook: Strong consumer-led rebound in Q2 GDP anticipated
Robust real GDP growth above 4% is expected in the second quarter of this year, driven by a sharp rebound in real consumer spending.
However, recently released data suggest that spending may cool a bit in the quarters ahead.
For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on June 15.Key observations:
- Home price growth uncertainty increased to its highest level in a year, suggesting rising mortgage rates are becoming a bigger concern for consumers.
- The outlook for credit, which supports consumer spending, also worsened in May.
- The data revealed that 12.8% of respondents expect their financial situation to worsen over the next year, up from 11% in April.
- The Fed is expected to raise interest rates a total of four times this year and once more next year, all in 25-basis-point increments.