Great news concerning the GDP yesterday...Not so great news today

Shortlived enthusiasm from econonomists and consumers alike.

Consumer spending sank 0.5% in September -- the largest drop in nine months -- reflecting the end of the clunkers program and continued strain in the labor and credit markets.The data, which were in line with economists' forecasts, come a day after the government estimated that gross domestic product rose 3.5% in the third quarter, largely on the back of consumer spending.

While the report raises questions about whether consumers can drive the economic recovery, increases in spending outside of the auto sector offer signs of stability.Personal incomes for September, meanwhile, were unchanged.

I am encouraged that spending outside of the auto sector offers signs of stability, but it does seem like most of the slight economic growth that we have been experiencing, despite conservative objections, may actually be attributed to all of the capital that has been invested in "jump starting" a failing economy.

Economic Improvement? Let's Hope this is Signifcant!

I was reading the Wall Street Journal earlier today and am excited about the prospect.

U.S. gross domestic product rose by a seasonally adjusted 3.5%annual rate from July through September, the Commerce Department reported in its first estimate of third-quarter economic activity. Economists had forecast 3.2% growth.

The economy's growth was the first since the second quarter of 2008 and serves as an unofficial confirmation that the longest and deepest recession since the Great Depression has ended. The GDP gain was driven by consumer spending, which rose by 3.4%. Economists said the massive stimulus injected by the U.S. government, such as the cash for clunkers program, helped boost consumer spending.

http://online.wsj.com/article/SB125681908931715735.html?mod=djemalertNEWS