All Posts Tagged: credit cards

U.S. Outlook: Behind the Q1 GDP headlines, and what it means for Q2

Scott Anderson
Chief Economist

We were bracing for a soft Q1 GDP print this morning, primarily due to a sharp slowdown in real consumer spending in the first quarter.

Crowds of shoppers walking in a mall, focusing on their walking legs.We got the drop we forecast, as real consumer spending growth slumped to 1.1% from a 4.0% annualized growth rate in Q4.

For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on April 27.

Key observations:

  • The decline in consumer spending was driven by a 3.3% decline in durable goods spending, primarily motor vehicles.
  • Business equipment spending also came out on the weak side.
  • We expect the drop in real consumer spending growth in Q1 to be partially reversed in the second quarter as recharged savings, pent-up demand, and lower credit card balances entice consumers to spend more freely.
  • Our forecast for Q2 GDP growth improved to 3.0% from 2.6% prior to today’s release.

Read my full report.

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5 simple steps to boost your credit score

Victor Polich
Mortgage Banking
Young couple sitting against stacked moving boxes in their still-empty, sunny new home.

A credit score is an indicator of financial health. It signifies your strength to banks and can help determine how easy or expensive it is for you to buy a home or car.

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U.S. Outlook: A softer start to the year

Scott Anderson
Chief Economist
Two signs in store window for sales - 50% and 70% - with reflection of shoppers faintly visible.

Unfortunately, the period of 3% GDP growth appears to already be in our rear-view mirror.

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6 financial tips for international students

Thierry Gabadou
International Banking
Group of international students sitting on the grass, discussing what is on their tablets.

Make sure you are budgeting for all the essentials before treating yourself to luxuries – living in the U.S. can be expensive.

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Mobile wallets: Some basics worth knowing

David Pollino
Security
Young people at an outdoor cafe; one of the young women is extending her phone over the waiter

The best mobile wallets use tokenization and encryption to protect your payment information.

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