Consumer Spending | featured news

Economic growth likely slowed in the second quarter as a capital investment drive by businesses was sated by imports and consumer spending tapered off, a government report is expected to show on Friday.

The 0.3 percent rise in consumer spending in February was considered a respectable showing, given the winter weather.

U.S. stocks opened higher, led by the material and energy sectors following the report of a small increase in personal spending and benign inflation.

Personal incomes rose more than expected in December and consumer spending increased for the third straight month, helping the economy slowly recover from the worst recession in decades.

Data, coupled with new information on jobless claims, provides a bit of hope for the economy.

Consumer spending plunged in September by the largest amount in nine months, reflecting the end of the government's Cash for Clunkers auto sales program. Incomes, the fuel for future spending, were flat.

The company continued to post strong gains in the computer segment while its rivals are still struggling to recover from the recession’s impact on consumer spending.

Propelled by the auto rebate program, consumer spending rose sharply in August, but personal incomes lagged.

U.S. consumers spent more in June and pending sales of previously owned homes also rose, data issued on Tuesday showed, but the biggest drop in incomes in four-and-a-half years pointed to a slow recovery from the worst recession in decades.

Households pushed their savings rate to the highest level in more than 15 years in May amid a big boost in incomes from the government's stimulus program.