Consumers are returning to the economic driver’s seat.
The economy grew at a 3.2 percent annual rate in the first quarter, primarily because consumer spending increased at the strongest rate in three years, the Commerce Department reported today.
Consumers — representing 70 percent of our economy — are taking the baton from the manufacturing sector, which boosted the economy in the fourth quarter of last year. At that time, factories churned out goods for businesses that had let their stockpiles fall during the recession, Associated Press reports.
But, the restocking of inventories is nowhere near as sustainable for growth as consumer spending can be.
So, are you starting to open up your wallet? Planning on a major purchase?
Or, are you building up your savings and paying down debt, still worried about the high unemployment rate?
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