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whatthehey

(3,660 posts)
Tue May 31, 2016, 03:45 PM May 2016

Consumer spending scores biggest jump in 7 years

Source: USA Today

Consumers emerged from their winter hibernation with zeal in April as consumption gains hit a nearly seven-year high and provided a shot in the arm to economic growth in the second quarter.


In the first quarter, consumption growth was meager as Americans socked away their solid income gains. Some economists blamed unseasonably warm weather that curtailed heating demand and a pullback in auto sales.

But in April, households splurged across the board. Car buyers led a 2.2% surge in purchases of long-lasting durable goods. Demand for clothing, food and gasoline drove a 0.7% jump in nondurable goods spending. And services consumption rose a solid 0.4%.

With spending outpacing income growth, the savings rate fell from 5.9% to a still healthy 5.4%.


Read more: http://www.usatoday.com/story/money/business/2016/05/31/economy-consumer-spending-personal-income/85182502/



Hardly time to break out the champagne just yet and much remains to be done, but good continuing progress especially with decent results in incomes and savings at the same time.
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