Consumer spending has had some gains throughout the month of June due to Americans slow income gains. With the second quarters numbers in real personal consumption has climbed all three months of the second quarter and this is huge because this is said to be the single largest determinant of gross domestic product expansion in our consumer driven economy. Consumption expenditures increased 4.2 percent during this quarter seeing the largest gain in a year. This is nice news to hear since the economy has had stubborn improvement since the Great Recession. Chad Moutray, chief economist at the National Association of Manufacturers, wrote in a research note last week."This release reflects a rebound in consumer spending, but there were significant drags on activity from fixed investment and inventories." Many analysts the only promising part of the second quarters report was an increase in consumer spending. Inventory and investment weakness in the second quarter are largely expected to abate as the year wears on, so the increasing number of Americans are going to start buying even more in the second half of the year."Reassuringly, consumers are still spending, and outlays are well supported by income growth," Gregory Daco, head of U.S. macroeconomics at Oxford Economics.
In conclusion, real personal consumption expenditure rising is a good thing for the economy as a whole. If this continues to rise it can really cause a positive impact on our nations GDP. This provides some hope in fixing our weak economy.
http://www.usnews.com/news/articles/2016-08-02/spending-income-gains-offer-hope-amid-weak-economy
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