Consumers have accounted for 80% of the economy’s growth this year.
The U.S. holiday season is ready to kick off this week after the Thanksgiving feast, but not every part of the economy can expect to share in the bounty.
A fusillade of economic reports this week — most of them bunched up the day before Thursday’s holiday — is likely to affirm the yawning gap between consumer and business spending. “We are still seeing pretty good wage and income growth,” said Sam Bullard, senior economist at Wells Fargo Economics Group. “Consumers continue to discount what is going on in Washington and abroad. They’re focused more on their jobs and income prospects.”Also giving the economy a mild boost is a resurgent housing market. Sales of new and previously owned homes have rebounded after a plunge in interest rates pulled more buyers back into the market. Builders have also increased construction.
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