Is it good news that U.S. consumer spending revved up to a three-year high in 2010? It could make for some improvement, especially if employment picks up to bolster Americans’ consumption habits in coming months, according to the BBC. —KA
Spending grew by 3.5% from 2009 the Commerce Department said, the best showing since a 5.2% rise in 2007—before the country went into recession.
The 2010 levels were helped by a strong December, where spending grew by 0.7%, the sixth consecutive month of growth.
Consumer spending makes up more than two-thirds of activity in the US, the world’s largest economy.
Rising incomes and the faster increase in spending meant that the savings rate dipped slightly in December, the data showed.