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Wallet covered in chains

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The Real Reason Why the Economy Isn't Booming

Aaron Levitt Dec 17, 2017

A lot goes into growing the economy.

From manufacturing to trade, there are many moving parts that add up to GDP growth. So far this year, a lot of these parts are starting to grind forward. That’s a much welcome sign after the last few years of steady but slow growth. But as the economy has moved ahead on many metrics, growth has been relatively muted.

And according to investment bank BlackRock, the answer lies within our wallets.

It turns out the consumer economy is holding back the overall economy. That’s a troubling sign. And until consumers get fully on board, we could see limited growth.

A Nice GDP Jump

Pick up any newspaper or log onto any financial website and have a gander at the latest economic data. The picture is certainly turning rosier by the minute. We’ve have decent manufacturing readings, unemployment remains low and corporate earnings remain high. Even better is that those earnings have been driven by revenues and not just accounting tricks.

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