New Numbers Show Signs Of Economic Growth

April 30, 2010— -- The economic headline today was clear: We're getting there.

Spring has sprung, and some real signs of economic progress are beginning to take root.

The economy grew at an annual rate of 3.2 percent in the first quarter -- a much rosier picture than the negative 6.4 percent rate from one year ago.

"After the single biggest economic crisis in our lifetimes, we're heading in the right direction," said President Obama said in the Rose Garden today.

The brightest ray of sunshine is a 3.6 percent jump in consumer spending. That's the biggest boost since 2007 and the third straight quarterly gain. It's also a major improvement from the fourth quarter report, when consumer spending only grew 1.6 percent.

Americans are buying things again and they are big things like dishwashers, cars, and furniture.

"Consumption is about 70 percent of the U.S. economy, so it's impossible to have a vigorous recovery without a boom in consumer spending," says Glen Hubbard, Dean of the Columbia Business School, "And consumer spending also reflects consumers' views about their future."

Shoppers are feeling more optimistic too.

"We probably wouldn't have shopped for anything that wasn't a necessity about a year ago," one told us, "Now we can do a little bit more fun shopping now."

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Businesses are buying too.

Their spending on equipment and software rose more than 13 percent.

And for the first time since the recession, they're spending to stock their shelves -- a huge $31 billion to fill inventories.

The jobs number is slowly creeping up too. A net total of 162,000 were created in March, the most in three years.

All of this is genuinely good news. The problem though, is that for some Americans, it's just not good enough.

"For millions of Americans, our friends, neighbors and fellow citizens, ready and willing to get back to work, 'You're hired' is the only economic news they're waiting to hear," said the President.

Despite all the good news, unemployment is still hovering around 10 percent, and to reduce that by just 1 percent, economic growth would have to total 5 percent for the year.