Energy prices continue to soar, the stock market’s seen better days and the housing market leaves much to be desired. Is it really wise to get excited over a 3.4 percent growth in the GDP from the first to second quarter? Maybe not.
Bloomberg.com attributes the growth to cooling inflation, rising exports, and an increase in commercial construction. With the value of the dollar being what it is (worth just slightly more than Monopoly money), it’s no surprise businesses sold more overseas, giving them the confidence to invest. Based on the current state of affairs, it seems reasonable to assume global trade will continue to flourish. Domestic trade, however — now that’s a different story.
Economists predict consumers will continue to limit their spending moving into the next quarter. Since this sector accounts for 70 percent of the economy, businesses might not want to bust out the champagne just yet in celebration of the economic growth.
