The US economy expanded at a surprisingly strong pace of 2% in the first three months of the year and could emulate this performance in the second quarter.
According to the latest forecasts from “Wall Street,” GDP is expected to grow by as much as 2% in the period from April to June. The Atlanta Federal Reserve also forecast GDP growth in the second quarter at 2.2%.
Standard & Poor’s Global, perhaps the main forecasting firm on Wall Street, sees the economy expanding by 1.8% per year.
Most other Wall Street forecasts range from 1% to 2%, but they may fluctuate until the GDP report is released at the end of July.
Spending in the first quarter increased at the fastest rate in two years, supported by rising wages, surplus savings, and a significant increase in Social Security benefits.
Companies are still hiring at a fast pace and need to pay more to attract workers.
