Consumer spending drives U.S. economic growth
The U.S. economy rose by 3.2 percent in the fourth quarter of 2013, pointing to optimistic prospects for the retail industry in the coming year. Consumer spending increased by 3.3 percent, marking the greatest growth in three years, Bloomberg News reported. Consequently, some retailers are experiencing greater demand and better business conditions.
The growth comes after a period of challenges for the economy. Not only were markets abroad impacted by the European economic crisis, but U.S. government spending cuts, fiscal battles and a government shutdown caused setbacks. USA Today noted that the last half of 2013 was the best economic stretch since the end of 2011. Economists are hopeful that the country has finally overcome some of the challenges that occurred over the past few years.
"For a period that included a government shutdown, it was a pretty successful quarter," said Sam Coffin, an economist at UBS Securities LLC in Stamford, Connecticut, according to Bloomberg. "The momentum carries over into this year. The worst of the fiscal battles is behind us. We'll see the economy picking up."
Some businesses are already seeing greater demand, the news source said, and retail customer trends indicate that Americans are spending more confidently thanks to job growth and property value improvements.
