What is consumer spending? What does an increase in Personal Consumption Expenditures mean?

[danalove]

Does the economy recover without consumer spending? How does consumer spending recover in high unemployment?

[roger767]

@danalove If consumers don't spend, they save money. Allowing the banks to have more money. They use that money to loan out to new starting businesses or for existing businesses to invest in new innovations. Creating new products/cheaper products. Which causes people to spend again.