consumer spending
Strong retail sales in MarchPosted by RJ and Makay on Apr 16, 2012 |
>> Read More RJ & Makay Blog Posts
Retail sales rose 0.8% in March as consumers increased their spending on a wide range of goods and services for the third straight month, the Commerce Department reported today. The retail sales increase easily beat economists’ forecasts of 0.4%. Consumer spending accounts for 70% of the nation’s economy, so experts are likely to revise upward their forecasts for first quarter gross domestic product (GDP).
American’s savings rate rose to 4% in December from 3.5% in November of last year as personal income rose 0.5%, the Commerce Department reported. The half-point increase was the biggest month-to-month gain since April 2010, according to economists at Credit Suisse. The gain represents a turnaround from the September to November 2011 period when consumers financed their purchases at a cost to personal savings.
The Federal Reserve’s latest Beige Book report indicates that the pace of economic activity around the nation is picking up, although the housing market continues to struggle. The report, released yesterday, shows that consumer spending was strong at the end of 2011 and most parts of the county saw significant gains in holiday sales.
