This is Mary Walden with economist MW welcoming you to the economic perspective. Today’s program looks at consumers still spending. Mike, there’s been much concern about the continued growth in the economy and whether a recession is imminent. Consumer spending dominates the economy. Are consumers doing their part to keep the economy rolling?
- They are, but with some cracks
- Consumer spending is 70% of the economy
- Since the spring, consumers have been increasing their spending at an annual rate of between 3% and 4%, a very good rate
- However, there does appear to be some weakness in discretionary spending, such as for furniture and vehicles
- Suggests consumers are more cautious – still spending on the necessities, but wary about going beyond their means
- I’m MW
And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.