Expansions in construction and consumer spending are part of an unexpected increase in the American economy in the second quarter of 2015.
GDP (gross domestic product) showed an increase of almost 4% in the April to June time period of 2015, according to figures released on September 25 from the Commerce Department. Bloomberg Business reported that it had surveyed more than 70 economists who had predicted a median gain of 3.7%.
Supporting the economic growth were factors such as strong hiring, a price drop in gasoline, and an increase in home prices. These factors, according to Bloomberg, account to roughly 70% of the United States economy. Bloomberg also considered this information supportive of the opinion of Janet Yellen, Federal Reserve Chair, that the American economy was poised to successfully weather the cooling of some overseas markets.
JPMorgan & Chase chief economist Michael Feroli said that declining prices in the energy markets have been a windfall for consumers. He stated his opinion that the economy would continue to grow throughout the remainder of 2015.
Business investment in residential and commercial construction, such as new branches of franchise opportunities, along with the bigger than anticipate pickup in consumer spending, were behind the upward revision of the GDP. The first quarter of the year showed only 0.6% growth after harsher than normal weather, labor disputes on the West Coast, and a pullback in investments within the energy industry.
Bloomberg notes that this was the third such revision for the quarter, and that the numbers will not see additional estimates until the yearly revision occurs in July of 2016.