Consumer Spending Lifts Economy, GDP Rises 2.5 Percent

Consumer Spending Lifts Economy, GDP Rises 2.5 PercentThe economic conditions in the United States might not look good, but apparently many Americans still found a way to spend more money. The Commerce Department said due to a big consumer spending, the economy of American grew by 2.5 percent in the July-September quarter. The government said the current data, nearly double the 1.3 percent growth in the April-June quarter, and a vast improvement over the anemic 0.9 percent growth for the entire first half of the year.

Economic analysts said although the 2.5 percent growth is not that big, the fact remains that the economy of the US is growing which is something to cheer about. Based on the data gathered by the Commerce department American consumers spent at an annual rate of 2.4 percent — more than triple the rate in the spring. They bought more cars and furniture, spent more on clothing and health care, and ran the air conditioner longer to help combat an unseasonably hot summer.

The report measures gross domestic product, or GDP, which is the country’s total output of goods and services. The experts is optimistic that the 2.5 percent growth will grew to 3 percent in the last quarter of 2011. Th e government for its part hoped the economy of American will grow more in the next few months to give boost to the reelection bid of President Barrack Obama.