Vital Signs: Weak Consumer Spending May Spoil a Recovery

Economists are increasingly confident that the recession is bottoming out. Many signposts point that way: Investors are encouraged that the banks are stepping back from the brink. The credit crunch isn’t over, but its bite is easing. Housing activity appears to be stabilizing, and consumers are gaining confidence in the future. The National Association for Business Economics said on May 27 in a quarterly forecast survey that NABE members expect “positive, albeit modest, growth in the third quarter, followed by steady improvement thereafter.”

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