U.S. Economy Makes Big Second Quarter Gains
The U.S. economy made significant improvements during second quarter 2013 and GDP is on the rise. The Commerce Department recently announced GDP grew by 2.5 percent from April to June 2013, a marked increase over previous quarters. The 2.5 percent growth is nearly double what was reported during first quarter this year and greatly outstripped government projections. In previous statements, the federal government said they expected the economy to grow 1.7 percent during the three-month period, making the level of growth a surprise for many economists.
Financial experts anticipate the growth will continue and project future gains throughout the rest of the year. Others hope the new economic reports could improve consumer and investor confidence. Ted Wieseman, an economist at Morgan Stanley, told Reuters the new numbers could spark confidence that the economy is finally making consistent improvements.
“We are likely now moving past the peak of fiscal drag and, as we do, improving underlying private demand should support a pickup in GDP growth,” Wieseman said.
As a result of the news, stock prices and yields on U.S. government debt increased, and the dollar improved against the euro.
The Labor Department also reported new jobless claims fell by 6,000 last week to 331,000.
Despite the overall positive news about the state of the U.S. economy, some reports revealed areas in which the country still needs to improve. National output was weighed down during second quarter as austerity measures went into effect and curbed government spending – the effects of the austerity measures were greater than anticipated and took hold of some areas of the economy.
Some reports also found that while the housing market continues to improve – housing investments accounted for almost 20 percent of second quarter growth – housing numbers began to look less stable toward the end of June.
Small business owners may not feel the effects of these changes right away, however, as shifts in the housing market or GDP do not immediately translate to increased profits. As the economy slowly recovers, many small business owners are still finding getting a small business loan to be extremely difficult due to tightened lending standards.
If a small business owner is having trouble getting financing, they can come to National Funding for assistance. National Funding can provide a merchant cash advance for business operations and financial guidance for entrepreneurs.