The U.S. economy is expected to grow at the strongest rate since 2005 this year with real gross domestic product (GDP ) expanding by around 2.5% to 3.0%.
The main driver for this growth will be a strong increase in household spending brought about by three important developments: rising home sales and prices, accelerating employment and income growth and the ongoing need to replace worn out durable goods.
Further support to growth will come from an improving global economic environment with Europe, a major market for American goods and services, growing at the fastest pace since 2010.
While economic activity slowed in the first quarter due to severe winter weather in much of the country, there are signs as spring arrives of a rebound in activity following the December-February dip.
We expect the pace of economic growth in the U.S. to accelerate significantly.