Consumer Spending Growing Faster Than GDP – Consumer Economics

Kent Forsey, CFP® Consumer Spending, Economy

The past four years have seen consumer spending exceeding GDP. Various factors drive consumer spending, including sentiment, optimism, wages, and demographics. GDP grew at a 2.6% annual rate in the fourth quarter, while consumer spending grew at a 3.8% annual rate. Historically, periods where consumer spending has grown faster than economic growth, as measured by GDP, inflation has evolved. Consumer …