U.S. consumer spending increases by 0.4 percent

February 1st, 2011 - 1:12 am ICT by BNO News  

WASHINGTON D.C. (BNO NEWS) — The U.S. Commerce Department on Monday announced that consumer spending increased by 0.4 percent in December 2010 continuing growth.

According to the Department’s Bureau of Economic Analysis, personal income increased by $54.5 billion, or 0.4 percent, and disposable personal income (DPI) increased $47.3 billion, or 0.4 percent.

In November, personal income increased by $44.9 billion, or 0.4 percent, while DPI increased $39.0 billion, or 0.3 percent. The data released on Monday indicates that consumer spending clearly accelerated at the end of 2010.

“Personal income posted stronger gains in the fourth quarter compared to the third. Looking ahead, we expect disposable personal income to get a boost from the Middle Class Tax Relief Act of 2010, which increases the take-home pay of many working families,” said U.S. Commerce Department Acting Deputy Secretary Rebecca Blank.

In addition, the Commerce Department informed that personal consumption expenditures (PCE) increased $69.5 billion, or 0.7 percent in comparison with the $35.4 billion or 0.3 percent increase in November.

“We expect these income and spending data to support stronger economic growth in 2011 - a top priority for President Obama and this administration,” added Blank.

Consumer spending grew a 3.5 percent in comparison with the 2009 figures. This increase represents the fastest pace of growth in three years and the highest since the 5.2 percent rise in 2007.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |

Subscribe