Consumer spending will continue to drive GDP growth

The latest evidence suggests that GDP growth accelerated to around 3% annualised in the secondquarter. Furthermore, the rebound in both of the June ISM surveys suggests that this strengtheningin activity is set to continue. While we are doubtful that the manufacturing sector is about toexperience a major resurgence, the far larger service sector looks well placed to continue drivinggrowth over the remainder of the year.