2012beof-111206092256-phpapp02

4 barring these external shocks gdp components

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: hocks. GDP Components Consumer Spending The recession uncharacteristically affected consumers because of the trifecta of impacts: employment, income, and wealth. Total nonfarm employment peaked in January 2008 (seasonally adjusted) before losing 8.8 million jobs; 2.3 million have since been recovered. Nonfarm total wages dropped $282.9 billion, but have been on the rise since Q2 2010. The S&P 500 decreased 57%, and household wealth declined 33% from 2007 to 2009, but they have since increased 85% and 21%, respectively. While these three metrics have demonstrated year-over-year growth, they have not reached their previous peaks. Post-recession consumer confidence, as measured by the Conference Board, peaked at 72 in February 2011 before trending a bumpy descent to 39.8 in October 2011—its lowest level since March 2009. Despite dropping from the 10.1% unemployment rate recorded in October 2009 (seasonally adjusted), unemployment has remained stubbornly high. October 2011 figures were at 9%, but they should tick below this level in 2012. As the economy recove...
View Full Document

Ask a homework question - tutors are online