The consumer is the most important contributor to the U.S. economy, currently accounting for approximately 68% of GDP. In the first quarter of 2015 severe winter weather caused consumer spending to slow. However, high confidence, rising incomes and low oil prices are expected to lead to stronger consumer spending in the second quarter and beyond.
- Although the economy hit a soft spot in the first quarter, we expect stronger growth for the balance of the year to boost full year gross domestic product (GDP) growth to about 3.0% to 3.5%.
- How fast the economy bounces back will be determined by consumers and their ability and willingness to increase spending. We expect a healthy rebound in consumer outlays in the second quarter.
- As the economy resumes its strong growth trend, it will have a positive impact on commercial real estate markets across the U.S.