Bloomberg (03/28/14) Victoria Stilwell

The economy is gaining traction and consumer spending increased in February by the most in three months as incomes rose, Americans began to recover from an unusually brutal winter, and the job market showed signs of improvement. Household purchases rose 0.3% following a 0.2% increase in January that was smaller than previously thought, according to the U.S. Department of Commerce. Bloomberg economists had forecast a 0.3% increase.

Spending on durable goods rose 0.1% after adjusting for inflation following a 0.4% decline in January. Spending on nondurable goods rose 0.3%.

MarketWatch (03/28/14) Laura He

The benchmark U.S. interest rate likely will remain near zero until well into 2015 because of low inflation and high unemployment, says Chicago Federal Reserve President Charles Evans. He anticipates a rate hike in the second half of 2015.

Meanwhile, first quarter 2014 gross domestic product may be affected by the recent harsh winter weather and decline to as low as 1.5%, based on “some private-sector estimates” he says. But “business prospects are still good,” so GDP should recover in the second quarter. He anticipates growth of approximately 3% for the rest of this year.

Dow Jones Business News (03/28/14) Kathleen Madigan

Manufacturers in the Plains states have recovered from the toll harsh winter weather took on their operations, according to the Kansas City Federal Reserve’s manufacturing composite index, which rose to 10 in March from four in February. A number above zero indicates expansion. The new orders index more than doubled to 13 from five.

A number of manufacturers reported difficulties finding qualified workers. Still, they remain optimistic about the next six months, except for their expectations for hiring. The future employment index declined to two after falling to six in February from 29 in January.