Economy Expands at 3.2% Clip as Spending Rebounds

Consumer spending drives growth for third straight month
By Newser Editors and Wire Services
Posted Apr 30, 2010 8:20 AM CDT
US Economy Expands 3.2%
A shopper casts an eye on flat-screen TVs.   (AP Photo/Paul Sancya)

The economy grew at a solid 3.2% pace during the first quarter of this year as consumers boosted their spending by the most in three years. It marked the third straight quarterly gain, providing more hope that a recovery is in progress. Still, growth came in a tad shy of the 3.4% forecast and was weaker than the fourth quarter of last year (5.6%).

Consumers powered the first quarter's growth: They increased their spending at a 3.6% pace, the strongest showing since early 2007—before the economy tipped into a recession. Looking ahead, however, analysts believe consumers will be wary of stepping up spending much further, given that the unemployment rate is hovering around 10%. (More GDP stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.