ObamaBoom Watch: Signs Of Recovery

12:36 am EST April 26th, 2010 | Economy | Comments Off

After the worst downturn since the Great Depression, signs of recovery are mounting — albeit tinged with ambiguity. Despite worries that American consumers might hunker down for years — spooked by debt, lost savings and unemployment — thriftiness has given way to the outlines of a new shopping spree: households are replacing cars, upgrading home furnishings and amassing gadgets.

Many economists estimate that consumer spending — which makes up some 70 percent of American economic activity — swelled by 4 percent during the first three months of the year, more than the double the pace once anticipated. Some have nudged upward their estimates for economic growth to more than 3 percent this year.

‘Consumers are showing extraordinary resilience,’ said Bernard Baumohl, chief global economist at the Economic Outlook Group. ‘There’s a lot of pent-up demand out there that is now being unleashed. The whole supply chain system is now being revitalized.’

Is this going to be a repeat of the 1990s boom? No. But my prediction is we’re headed towards a steady, growing economy.