As expected, the U.S. economy grew at a sluggish pace of 2.0% as reported by CNN Money. We need economic growth exceeding 3% in order to generate jobs, but it should be noted that the economy is still growing. While certainly not the only indicator, positive economic growth is a sign that we are not experiencing another recession. As we look to the near future, most analysts are not expecting much higher growth, but the fourth quarter might see slightly improved numbers.
One of the key components to an economy is consumption spending. It grew by 2.6%, so that's a sign that consumers are starting to loosen their pocketbooks a bit. While still relatively low, it is the highest number recorded since the fourth quarter of 2006. A weak labor market is keeping personal income rates low, so there's concern in the future.
No comments:
Post a Comment