Consumer Spending Now Makes Up 71% Of GDP

October 12, 2009

USA Today reports, "One year after a U.S. economy said to be overly dependent upon consumer spending toppled into crisis, consumption now makes up an even larger share of national output." Now, "personal spending on cars, clothes, food and other items accounts for 71% of gross domestic product, according to the latest Bureau of Economic Analysis data" which is "slightly above the level one year ago and well above the long-term average around 65%." Consumer frugality is considered unusual in recession, according to David Rosenberg, chief economist of Gluskin Sheff in Toronto.