Cleaning & Restoration Breaking News

Consumer spending moving upward

WASHINGTON--Consumer spending grew at a rate of 6 percent during the fourth quarter, propelled by gains in consumer and government spending and supporting wide belief the U.S. economy is on the road to recovery.

But analysts are warning that despite this largest increase since a 6.2 percent hike in the second quarter of 1998, consumer spending, which is key to stabilizing the soft economy, could slip as confidence erodes and the job market remains weak.

Spending on durable goods spending shot up its highest rate in 15 years, 39.2 percent. Still, there was ample evidence in the Gross Domestic Product (GDP), the broadest gauge of the economy's health, report that the business sector is still weak.

Business spending on new plants and equipment plunged 13.1 percent, a bigger decrease than the 12.8 percent decline first estimated and the fourth straight quarterly decline.

Meanwhile, government spending grew 10.1 percent in the fourth quarter, up from the 9.2 percent rate first estimated and also the biggest rise since an 11.1 percent gain in the second quarter of 1978.

Still, the U.S. economy grew much faster than initially thought in the fourth quarter of 2001. The GDP expanded at a revised 1.4 percent annual rate in the final three months of last year, seven times the 0.2 percent rate first estimated, the government said.

While consumers and the government spent more in the last three months of 2001, businesses cut back. That business spending, analysts say, is a key ingredient for a strong recovery.

Analysts say enormous depletion of inventories strengthens their conviction that an economic recovery is at hand, as companies will need to step up production to replace the goods that have been flying off store shelves and showroom floors, fueling GDP growth in future quarters.

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.



Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.


Beginning April 21, Google will start judging websites based on their mobile friendliness. What exactly does this mean to you cleaning website? Find out in the latest edition of The Hitman Advertising Show, which will also cover tips and suggestions on getting mobile compliant.
More Podcasts

ICS Cleaning Specialist Magazine


2015 April

The April ICS issue features content on concrete polishing, green cleaning, air duct cleaning, injection sprayers and new products.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive


The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products


Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view


facebook_40.png twitter_40px.png youtube_40px.png


Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view