Feb 13, 2012

Supportive Data For GDP

Consumer credit - one of the key elements of the economic recovery boomed in November and December. This could be sign of consumers returning back to the markets and rising spending. For economy in which spending represents almost 70% of the GDP last reading should be stable support for the growth. Although forecasts have been lowered compared to Q4 2011 the expectations of 2% growth for the Q1 2012 and rising 2.3% forecast for Q2 should be considered positive. If consumers continue their recovery in spending there should be stable foundation for the US growth. Important point to mention is the seasonal sensitivity of consumer credit as growth indicator. Last few months of the year historically has been better than average however 2011 year end proved not only to be better than summer, but to be better than 2007 – year before the crisis hit global economy.

Consumer Credit and US GDP Growth Forecast

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