Monday, April 30, 2012

US consumer spending rises 0.3% in March

Shopper in New York

Americans increased their spending by 0.3% in March in a sign of the continuing recovery for the US economy.

The rise, revealed in a Commerce Department report, also showed that personal incomes rose 0.4%.

Economists closely watch consumer confidence and spending patterns because their spending accounts for 70% of economic activity in the US.

Falling unemployment and relatively warm weather have helped boost spending this year.

January to March was the warmest first quarter the US has experienced since 1895, according to the National Oceanic and Atmospheric Administration.

That encouraged Americans to dine out and go shopping, economists say.

"The trend is good from the perspective that incomes are outpacing spending, so we don't see consumers dipping into savings as much," said Kathy Lien, head of research at GFT Forex.

"Of course, markets like increased spending, but in this situation it's a healthy trend in terms of reducing household debt levels," she said.



Source & Image : BBC

No comments:

Post a Comment