US Productivity & Consumer Spending Rises

Amongst the recent flurry of news articles based on the US economy, worker productivity has finally started to rise in the second quarter of 2009. Specifically, US productivity is now rising faster in 2009 than it has for the past six years according to the US Department of Labour.

At the same time however, US labour costs are continuing to fall as employers cut hourly rates and also reduce hours in order to survive during the overall financial downturn that many nations are still experiencing.

However, as US productivity soars through the roof, many analysts are speculating that this is only a minor detail when it comes to looking at the overall picture of the US economy.

Consumer spending is also continuing to rise which has now risen for the second consecutive month, which is also a reassuring sign that the economy may finally be in recovery after over a year of recession thanks to the now positive growth rates.

Whilst it may be premature to speculate over the future of the US economy at this time, after seeing continued signs of recovery, the news is certainly looking up for the American consumer. Whilst unemployment is still one of Americas biggest problems, growth in unemployment rates is finally starting to slow, and more and more people are starting to feel reassured that the financial crisis may finally be behind us.

With signs of relief now evident in multiple industries, many people now hope that it is only a matter of time before the financial crisis is just a thing of the past. However, economists are sharp to point out that it will take well over a year before any ‘plain sailing’ can occur.

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