US Consumers Boost Spending 2.4% in January - Possible Start to a Recovery
On Friday, the Commerce Department issued a report showing that, after several months of retrenchment, US consumer spending bounced back in January and was up 2.4%.
In addition, personal incomes were also up 10% in January, in part due to the stimulus checks many Americans received from the government.
The January increase comes after two straight months of spending drops which were fueling concerns of a "double-dip" recession.
Economists are hopeful that this bump in consumer spending is an indication that Americans are growing more confident about spending and may be the start of an economic recovery from the pandemic-driven recession.
Meanwhile, Wall Street has seen a deep selloff in the stock market as investors fear that a strengthening economy may lead to accelerated inflation and to the Fed raising its short-term rate too quickly. Bond yields were also sent surging on Thursday over inflation concerns.
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