US consumer spending up in December

| January 31, 2011 | 0 Comments

The Commerce Department has reported a further rise in consumer spending in the US for the month of December.

Spending grew 0.7% in the month after rising by 0.3% in November, the sixth consecutive monthly rise.

The ongoing rise in consumer spending suggest a sustainable recovery is underway in the world‘s largest economy.

Consumer spending accounts for approximately two-thirds of economic output in the US

Meanwhile, the Commerce Department said consumer spending also grew at its fastest pace in three years during 2010.

Spending was 3.5% higher compared with 2009 - the best level since a 5.2% rise in 2007 - prior to the global recession.

The figures arrive shortly after it was revealed the US economy grew by an annualised 3.2% in the fourth quarter.

However, the rate of growth was slightly lower than the 3.7% expected by analysts but follows growth of 2.6% in the third quarter.

Meanwhile, the US economy grew by 2.9% in the whole of 2010 – the strongest year of growth since 2005.

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