After several years of scrimping
and saving, it seems that Americans are comfortable enough to start spending
again. Nationwide, retailers were
pleasantly surprised by an unexpected increase in sales this past month as
consumers unleashed their “pent up demand,” as Ken Perkins, president of Retail
Metrics LLC describes it. Though the
occasional shopping spree might not seem like the surest sign of economic improvement,
consumer spending actually accounts for more than 70% of economic activity.
What’s really striking, however, is
the combination of this shopping boost with several other telling factors. For one, the US economy has grown 1.9% in the
first three months of this year.
Considering that the country’s GNP was a bit over $15 trillion last
year, 1.9% is a good deal more than it sounds.
The $7.87 billion rise in money market funds is another good sign. Americans aren’t just using their newfound
capital for shopping; they’re also investing it. After the mortgage bubble burst in 2008, it’s
especially comforting to see that mortgage rates have fallen to a new low of
3.75%. With housing becoming more
affordable, bank-owned home sales and foreclosures have dropped.
This economic improvement has been
fueled by the growth of America ’s
job market. Although some areas of the
country would certainly appreciate more growth, those of us living in upstate South Carolina are
fortunate enough to boast one of the best employment rates in the country. Greenville is
leading the state with only 7% unemployment, followed closely by the Charleston area at
7.1%. We here in the Acadia
community are certainly enjoying our share of the recent growth. With the strong job and housing markets, it’s
no surprise that more and more lots are selling in the newly opened Phase II,
along with our Townhomes and Cottage homes.
While we still encourage prudent investment- along with the occasional
shopping trip- now might be a good time to consider moving to Acadia
where life, if not the economy, seems in balance.
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