The American consumer is back, recharging the U.S. economic expansion.
Households splurged on new cars, appliances, televisions and clothing as spending climbed 0.6 percent in November, beating the median forecast of economists surveyed by Bloomberg, according to figures from the Commerce Department issued today in Washington.
“We have very solid momentum entering 2015,” said Michael Gapen, the New York-based chief U.S. economist for Barclays Plc. “Labor markets are doing better, the consumer has a more favorable outlook for the economy and their own incomes, and they’re acting on it.”
The biggest employment gains since 1999 and the lowest gasoline prices in five years are giving Americans reason to believe the economic expansion is finally shaking off the vestiges of the recession. Gross domestic product grew at a 5 percent annualized rate from July through September, the biggest advance since the third quarter of 2003 and up from a previously estimated 3.9 percent, according to revised Commerce Department figures.
Source: Bloomberg News