|
Growth accelerated in the first quarter largely because consumer spending rose at the fastest pace in more than two years. But some economists expect growth has slowed slightly in the current April-June quarter to around 2 percent. Consumers increased their spending in April, despite paying higher Social Security taxes that has reduced their paychecks this year. Their spending will likely add to economic growth in the April-June quarter. Consumer spending makes up roughly 70 percent of economic activity. Steady job growth could offset some of the impact of the tax increase. The economy has added an average of 208,000 jobs a month from November through April. That's up from only 138,000 a month in the previous six months. The job gains could provide consumers with more money to offset the impact of the tax increase. Cheaper gas is leaving consumers with more disposable income. The national average price has risen slightly over the past week to $3.58 a gallon. But it is still 21 cents lower than the peak price reached on Feb. 27.
[Associated
Press;
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor