After the economy burst out of the gate in the first quarter, growing at an annual rate of 5.8%, some dismal scientists warned that the recovery was destined to peter out in the second quarter. Consumers were bound to fade, they said. Well, it's not happening. Households remain the leading force in this recovery, and fears of a double-dip in the economy are now all but dead. That's evident from the latest news on consumer spending. Motor vehicles in April sold at a pace higher than their first-quarter average. Rising applications for mortgages show housing demand is still strong. And most surprisingly, retail sales jumped 1.2% in April, the biggest gain in six months (chart). The increase in store sales suggests that real consumer purchases are on track to grow at an annual rate of 3% to 4% in the second quarter, enough to ensure another quarter of healthy economic growth.
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