Consumer spending likely drove growth in Q1
AP
By JEANNINE AVERSA, AP Economics Writer
WASHINGTON – The economy is rebounding as America's shoppers snap back to life.
That adds up to what should be a solid showing in the opening quarter of this year. The fresh picture of the nation's economic health that the Commerce Department will release Friday is expected to provide the strongest evidence yet that the economy is strengthening.
Consumers, the drivers of overall economic activity, finally seem to be spending more. To be sure, shoppers aren't spending with the kind of abandon that usually sparks the early stages of economic recoveries. But they're spending enough to keep the economy expanding.
The economy grew at a 3.4 percent annual rate in the January-to-March quarter, according to Wall Street economists surveyed by Thomson Reuters. It would mark the third straight quarterly gain as the United States heals from the longest recession since the 1930s.
Multiple signals suggest the U.S. economy has turned a corner. Employers are creating jobs again — a net total of 162,000 jobs in March, the most in three years. Manufacturers are boosting production. Consumer confidence is higher.more...
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