Increase in U.S. Consumer Spending
As an increase in employment and income is generally recorded, various reports show that U.S. consumer spending in most households is about to increase. This is a revelation after consecutive three months stagnation and as the weather becomes more related to the seasons, so does the economy of the United States receive a welcome improvement.
Added indications are that employers reportedly raised their payrolls during February, with another positive factor being that this was the most favorable six month steady growth in jobs since 2006 and is a motivation for U.S. consumer spending. Various reports show economists as being optimistic regarding the labor market and factors related to the weather conditions.
According to reported sources, the general situation for U.S. consumer spending has improved significantly during the past months. Reports show that the motivator for this and a potential acceleration is the recorded improvement in the labor market.
Prevailing weather conditions have reportedly created a situation whereby the average U.S. consumer spending has been less on heating. This is an unexpected bonus to consumers from paying less in energy associated utilities. When combined with revised income data, it is shown that the average pay of workers increased during the past six months. This is the highest in about a five years term, with the result that households have been able to save some extra money.
According to data from the Commerce Department, average Americans saved 4.5% of their income with tax deducted, in the fourth quarter. An increase is shown from a previous estimate of 3.7%. However, what should be taken into account, when considering the condition of U.S. consumer spending, is the fact of rising gasoline prices. This will, to a certain extent, be mitigated by the savings on heating and related utilities.