US economy spurred by consumer spending?
Posted by Stephen Cline on September 12th, 2010The US economy is speeding towards recovery, which is an encouraging and also heartening sign. It seems now that consumer spending may have effectively spurred on the growth in the first quarter. This bodes well for US economy growth in 2010. Senior economists are also saying that the other pillar of the US economy has to be jobs and the growth of which will ensure that the US economy grows as a whole. Higher consumer spending internally means that recovery can expect to be rather self sustaining and internally fueled and not just by externally dependent exports growth. This will help companies like Starbucks which are dependent on consumer spending within the country.
The increase in the internal growth of companies will lead to better job prospects and when people get jobs and earn money, they will spend, which in turn leads to greater consumer spending. Thus internal jobs creation is quite one of the keys to priming demand and leading to all-round recovery for the economy. It has also been noted that the US economy, which is the largest in the world grew at a very fast clip in the last quarter of 2009, which was much faster than the growth seen in the last 6 years.
Tags: consumer spending, US economy