Economic Recovery in 2012?
According to a recent survey conducted by economists at the JP Morgan Chase Company inNew York, related to economy-wide outlays on services, the indications are that consumer purchases of household goods finished 2011 on a stronger basis than estimated. This could indicate an economic recovery is under-way.
Further statistics related to economic recovery in 2012 revealed that the data, points to a 15% increase in healthcare spending in the fourth quarter, compared to a current estimation of 2.6%. This figure should however, be tempered by adjustment for inflation
A primary influencing factor relating to an the economic recovery in is the increased prices for gasoline, which are likely to raise temporarily inflation. At the same time, this will have the affect of reducing the purchasing power of consumers. A report to Congress earlier this month, presented by Federal Chairperson, Ben S. Bernanke, explained that maintaining monetary stimulus was warranted. This was despite employment gains and a lower rate in the jobless market.
Further optimism towards economic recovery is stimulated by an increase in consumer demand, which reportedly began last month. Various indicators show that retail sales during February increased by 1.1%, which is the largest reported gain in five months.
Other positive indicators for economic recovery in 2012 are the rise in the sales of automobiles and light trucks. This is regarded as contributing to the positive climate as they recorded a 15 million annual rate for last month. According to a report from Ward’s Automotive Group, this is the highest recorded number of vehicles sold since February 2008.
Incentives for belief in an economic recovery include the news that the economy grew at a 3 % annual rate, during the period October to December. This was supported by a consumer spending increase of 2.1%, based on most recent government calculations. An added factor could be revealed, when the Commerce Department produce their revised estimate for growth later this month.