t an annual rate of around 2.25%. Growth is not expected to be as dramatic as the 4.7% rate of growth shown in the last quarter of 1996. But, overall the economy should show moderate to strong growth throughout the year.When looking at the factors that make up real GDP, the most important factor is personal consumption. Personal consumption is the measure of household spending on durable goods, non-durable goods and services. (11, p 227) This accounts for about 65% of real GDP. This illustrates the fact that the U.S. economy is a consumer driven economy since personal consumption exerts a bigger influence on the economy than all the other factors combined. Since the economy is so dependent on consumers, their attitudes are very important in predicting future performance.The main way of tracking consumer attitudes is the survey of consumer confidence. This survey released by the Conference Board, measures how consumers feel about the economy, local job market, and their own financial condition in general. This is very important because the amount of confidence people have in the economy greatly influences their spending habits. If people feel confident they are going to spend more freely and are more willing to go into debt to finance large purchases. If people do not feel confident they begin to save more money and attempt to pay off their debts. Both of these represent a leakage from consumption....
