Consumers reopened their wallets and manufacturers slashed inventories, indicating they're getting ready to ramp up production of more goods this year. Also contributing to growth were rising exports and falling imports. But just how good will 2011 prove to be?
Nouriel Roubini, the renowned NYU economics professor with the nickname "Dr. Doom," has offered up another dire prediction: Even if the U.S. and Europe manage to avoid a double-dip recession, more than 400 U.S. banks will likely fail.
The U.S. savings rate rose to an eight-month high in May, as a 0.4% rise in average income outpaced a 0.2% rise in spending. But cautious consumers spending, while good in the long term, may slow the country's economic recovery.
