Last summer, Americans did not have much control over their expenses which was indicated with the economy rising at a faster rate. Still its too weak and is still enough which is failing to decrease unemployment in the country.
On Friday, the Commerce Department revealed the economy had expanded at an annual rate of 2 percent in the quarter of July – September. This figure indicates an improvement in the figures from the weak 1.7 percent in the last quarter of April – June.
The spending of consumers helped to boost the economic growth of last quarter which was 2.6 percent. This was again partially better than the second quarter’s growth rate which was 2.2 percent and proved to be the biggest quarterly increase since the end of 2006 which was a gain of 4.1 percent and it was before the recession period.
70 percent of the national economic activity depends on the spending of the customers and thus it plays an important role in controlling the economic growth. However, the customer spending has to be increased more to have any effect on the unemployment rate of 9.6 percent. Even, the economy has to rise at the rate of 5 percent for an annual year.
Businesses have also helped to better the performance of economy in the quarter of July – September. Spending on equipment and software was also increased to an annual rate of 12 percent. However, this was only of what the figures were in the quarter before that. Commercial construction was also increased at the rate of 3.9 percent in this quarter.
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