The One Economic Statistic You Need to Watch87 views 2013-07-18 23:41 Tags: accounts domestic economic blank because
If you really want to measure economic growth, keep your eye on one statistic—consumer spending.
One of the key determinants to economic growth in America is the level of consumer spending. That’s because consumer spending accounts for approximately 70% of the overall gross domestic product (GDP).
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This makes it imperative to have a stable upward trajectory for consumer spending if economic growth is to rebound over time.
While we certainly wouldn’t want the level of consumer spending to exceed the level of personal income by a massive amount (as that would indicate savings were being eroded), a lack of consumer spending can indicate that people are unsure of their financial situation.Continue Reading: The One Economic Statistic You Need to Watch