Real consumer consumption has grown at a rate of only 2.2% since the end of the Great Recession, according to Wells Fargo Securities' Midyear Consumer Spending Outlook.
This rate is below the rate of 3.0% during the last economic expansion, resulting from significant job losses, tighter credit, and loss of household wealth. For some consumers, these factors remain as obstacles to increased consumer spending.
Overall, the report authors see consumers as being in a better position to help the economy grow. "However, the pace of improvement will remain below that of prior recoveries," the report states.
Report authors said they expect real consumer spending will remain at the post-recession average pace through 2014's first quarter. Continued growth in jobs and incomes are then expected to boost spending to about 2.5% by the end of 2014.
to Daily News