GREENFIELD, Mass (WWLP) - Economists say consumer spending is likely to pick up this year.
According to Monday's National Association for Business Economics survey, consumer spending will increase while government spending declines at a faster rate.
Economists say the government is making more cuts, but at the same time, the unemployment picture is improving, and you're expected to spend more... but that may not be the case.
Economists predict that the U.S. economy will grow by 2.4 percent this year and 3 percent next year. That's unchanged from their predictions in February and it has small business owners wondering...is change actually coming.
Tracey Hart, owner of Chet's Barbershop, says customers are still being careful with their extra spending.
"I don't see the economy getting much better than last year. People are going every three weeks instead of every six weeks to get their haircut. There letting there hair grow a little bit longer and saving money in between cuts."
Jason Wytas, of West Springfield, recently found a job at Nabisco, and says his spending habits are likely to change.
"I would say that I'm going to spend more now that I have a full time position with this job and more likely to go out and go to a few restaurants and go out to the movies and take out my girlfriend."
It's a change in spending habits that future business owners like Bridgette Chaffee, of Turners Falls, feel will push them forward.
"We're going to be starting a restaurant yea. If it does and if it is in fact going up then that will help us."
The survey also showed that spending in the housing market is looking up giving another positive outlook for job growth.