Source: blogs.wsj.com - Friday, January 30, 2015
Getty Images Consumers are breaking into a happy dance and breaking out their wallets. Ever since oil prices began falling, consumers have been feeling better and been more willing to spend on stuff not flowing through a gas pump. The latest evidence of that came Friday with the release of the fourth-quarter gross domestic product report and the January consumer sentiment index . The Commerce Department reported real consumer spending jumped at a 4.3% annual rate, the fastest pace since 2006 and the main highlight of a disappointing report that showed the economy overall grew just 2.6% at the end of 2014. The consumer acceleration was broad-based. Growth accelerated for spending on durable and nondurable goods well as services. Consumers are more willing to spend because they feel more enthusiastic about the economy and their finances. The consumer sentiment index compiled by the University of Michigan’s Surveys of Consumers ended January at 98.1, the highest reading in 11 years. The report noted that sentiment is up 20% since July—just as oil prices start to swoon. Importantly, the gains over the past half year were as large for households earning less than $75,000 as they were for consumers making more than that. The Michigan report joins other surveys that indicate U.S. consumers view the economy very favorably in January. The Conference Board said Tuesday that its January confidence index hit its highest level since August 20
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Getty Images Consumers are breaking into a happy dance and breaking out their wallets. Ever since oil prices began falling, consumers have been feeling better and been more willing to spend on stuff not flowing through a gas pump. The latest evidence of that came Friday with the release of the fourth-quarter gross domestic product report and the January consumer sentiment index . The Commerce Department reported real consumer spending jumped at a 4.3% annual rate, the fastest pace since 2006 and the main highlight of a disappointing report that showed the economy overall grew just 2.6% at the end of 2014. The consumer acceleration was broad-based. Growth accelerated for spending on durable and nondurable goods well as services. Consumers are more willing to spend because they feel more enthusiastic about the economy and their finances. The consumer sentiment index compiled by the University of Michigan’s Surveys of Consumers ended January at 98.1, the highest reading in 11 years. The report noted that sentiment is up 20% since July—just as oil prices start to swoon. Importantly, the gains over the past half year were as large for households earning less than $75,000 as they were for consumers making more than that. The Michigan report joins other surveys that indicate U.S. consumers view the economy very favorably in January. The Conference Board said Tuesday that its January confidence index hit its highest level since August 20from Top News on RSS Feeds http://ift.tt/1zfiYp2
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