State of the Consumer

Americans keep spending. GDP (Gross Domestic Product) grew at an annualized rate of 2.4% in Q2. Strong consumer spending led. The Fed's staff subsequently canceled its prediction for a recession, given the resilience of the Economy. Retail sales increased 0.7% in July, a much stronger-than-expected result. The Street modeled 0.4% growth. That translates to a 3.2% year-over-year increase. Consumer spending accounts for 70% of America's economic activity. It's still strong. Cars and Health Care spending were the standout strength, up 8% each.