The economy has significantly improved since the last recession. The article talks about both the negative and positive aspects of the current economy.First of all it discusses the GDP and how it has improved over time. The economy grew at 4.2 percent , excluding the inventories.Also,consumption is the biggest component of the US economy. Personal expenditure grew by 4.2 percent this year. The increase in consumption has lead to a shrinkage of the investment According to the article, "The simple fact is that consumers are driving the economic train now, and businesses are pulling back."
Consumers Drove the Economy This Spring
Contribution to second-quarter G.D.P. growth
2.8%
0.2%
0.1%
-0.2%
-0.2%
-0.2%
-0.2%
-1.2%
I find it interesting that the consumers are pulling a majority of the weight now and that the businesses are not doing as much.
ReplyDeleteMost of the companies do produce or invest based on what consumers are more likely to be interested in, it would be interesting to see if the business is adapting and learning the consumption pattern for future investments.
ReplyDeleteI find it interesting that overall personal consumption grew just as much as the overall economy. I'm curious about the reason why consumer spending increased so much this quarter.
ReplyDelete