The month of May got off to a strong start in the US with an announcement by the Commerce Department confirming that consumer spending in March matched predictions of a 0.6 percent increase. March’s increase follows a 0.5 percent in February.
The Commerce Department also noted that for the first time this year, income levels increased. This trend is expected to continue and is expected to lead to growing demand into the summer months.
“Many people are feeling more comfortable and are willing to spend,†said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida, who accurately forecast the gain in consumer spending. “We do need to see job growth to make this a sustainable recovery.â€Â
Source: Bloomberg News
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