Springtime Breathes Life into U.S. Economy

Spring is always synonymous with new beginnings and growth. This is evident in the beautiful flowering plants, the lush green vegetation, and more importantly, a thriving U.S. economy.

This has been the trend ever since the U.S. overcame the Great Recession, which lasted from 2007 – 2009.

While the economy experienced a 4.2% jump in the spring of 2018, analysts are predicting roughly a 3% expansion in the second quarter of 2019, which would still position it to have twice the growth rate than in the first three months of the year.

Signs of growth are already evident, as seen in growing auto sales, increases in manufacturing and hiring, and the lowest level of layoffs since 1969.

The quicker sales of new automobiles will further enhance the U.S retail sales numbers, though subsequently, this will likely lead to higher gas prices as well. Fill up costs climbed 10% in March, the highest level reached since November of 2018. Wall Street is hoping for a 0.8% increase in March retail sales, or closer 0.4% if auto dealers and gas stations are excluded.

The construction sector is also projected to benefit from the spring growth, as March is generally a great time for the construction of more homes, thanks largely to the warmer, more favorable weather. Additionally, mortgage rates have dropped, which is generating more interest in buying homes.

Each of these factors will play a role in breathing life into the U.S. economy, giving us yet another reason to love the spring.