Monday, June 28, 2004

May Sees Largest Consumer Spending Increase in Two Years

From Fox News:

Consumers — the lifeblood of the economy — boosted their spending in May by the largest amount in more than two years, an encouraging sign for the recovery's strength.

The Commerce Department (search) reported Monday that consumer spending rose by a sizable 1 percent, a considerable pickup from the 0.2 percent increase registered in April. The increase in May was the largest since October 2001, when spending rebounded with gusto after being depressed by the Sept. 11 terror attacks.

Americans' incomes, meanwhile, went up by a strong 0.6 percent in May for the second straight month. The growth in incomes in the last two months was especially heartening because that powers spending in the future. The income and spending figures are not adjusted for price changes.

Great news for the economy and and American workers. The economy coninues to boom, and the transfer of sovereignty in Iraq has lifted some uncertainty from the markets, and consumer confidence is up.

Read it here.