With the economy rising in the month of February people are hopeful that this is a sign to a recovering economy. Also income is on the rise as well. With consumer spending increasing .7% in February economists remain positive on the economies overall return to levels before the recession.
The economy is about to encounter a small problem in the coming months though. With the up and coming Sequester the government looks to cut back on roughly 85 billion dollars in federal spending. This will negatively effect the growth rate in the oncoming months but there is still hope for improvement.
There is somewhat of a hidden reason behind the higher growth rates for the previous months positive growth though. Over the past month gas prices rose by 35 cents which lead to an increase in consumption just due to necessity. But, Americans also spent money on long lasting items such as houses and automobiles.
Overall Economists seem positive and expect continual growth. Hopefully the sequester will not have a large effect on these positive growth rate. The sequester has the power to negate all the positive gains the economy has gained over the past few months. It will be interesting to see how this whole situation plays out.
http://www.nytimes.com/2013/03/30/business/economy/reports-show-income-is-up-and-so-is-spending.html?ref=economy&_r=0
These are all good signs for our economy. You made a good point with he budget cuts and the raising gas prices though. I think even though it might hurt our growth a little, the budget cuts are very necessary. The needed to be made sometime, and we can't just put them off forever. I don't think the cuts will hurt our growth too much.
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