There are a couple of things that quickly flash to mind with your question.
1. Unfortunately, when we start to lose body fat, which it sounds as if you are doing, the fat usually does not come from the areas we most want it to come from first. As your "losses" continue, however, you should start to see the fat coming off your stomach area as well. Keep in mind that gender and genetics play a fairly large role in determining when and where changes occur during the process of reducing body fat.
2. The second thing that comes to mind is that the loss of fat from other areas creates the illusion that your stomach is growing even though, in actuality, it is staying the same.
Solutions:
Whenever I hear of individuals having trouble with body composition goals, I always look toward their nutrition first. Below is a list of some very common deficiencies.
1. Not enough vegetables in the plan. I usually recommend 4-6 cups of vegetables per day. Not only do vegetables have very high nutrient levels, they also have a lot of fiber.
2. Water is often a neglected nutrient. You should be drinking one ounce per pound of body weight of pure water every day. Dehydration severely inhibits your ability to lose body fat.
3. Not enough essential fatty acids. Flaxseed and fish oils should also have a place in your nutrition plan. At least one serving of each per day will insure that you are getting these very important nutrients that assist in keeping cholesterol and hormone levels normal and in maintaining numerous other body functions.
4. Protein is the final neglected nutrient. My general advice is to try and eat one gram per pound of body weight per day. These are not just some hair-brained dietary recommendations that I have come up with on my own. I have compiled this knowledge from listening to some of the best nutrition experts in the country, along with having analyzed hundreds of dietary recall journals.
The above deficiencies were apparent in almost every journal I analyzed. If you do have all of your nutritional "ducks" in order, however, then one more aspect you will want to consider is anaerobic interval training.
Basically, this type of training entails working at 90-100% of your maximum effort, recovering from that effort, and then repeating the effort again. I would recommend starting out with a moderate amount of time, something in the 15 minute range. The goal with this type of training is to steadily reduce the amount of rest needed between each effort. I have had some great results using this type of training in accomplishing body composition goals. Although this type of training can be a catalyst in helping break through a body composition plateau, you should not be overly reliant on it. I always recommend getting things straight with your nutrition first.
I hope you now have a better understanding of why your "gut seems to be growing" and have gained some helpful insight into how to accomplish your body composition goals. I wish you much luck in your continuing body composition changes.