Philadelphia, Pennsylvania – (StockNewsDesk) – 09/29/2014 — Recent consumer spending data came in higher than expected, continuing the positive momentum to the US economy and progress for the consumer balance sheet.
Increase of 0.5%
The Commerce Department reported that consumer spending rose 0.5% in August compared with the previous year. This was above the median forecast of 0.4% from a wide panel of economists. The August figure was also a welcome surprise from July when consumer spending was flat on a year over year basis.
While global economies such as Japan, China, and Europe continue to struggle, the US has managed to chart a steadier course and has grasped somewhat of a sustainable recovery in which monetary policy is being weaned off. Rather in these other countries, political realities are conflicting with the needs of the economies. It seems the US has entered a period of positive momentum, where good news is not met by selling by market participants because of fears of Fed withdrawal.
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