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As 2015 Starts, the American Consumer Is Back

Bloomberg (12/23/14) Shobhana Chandra; Michelle Jamrisko

Consumer spending rose 0.6% in November, according to the U.S. Department of Commerce, while the economy grew at the fastest pace in 11 years. The 76 economists surveyed by Bloomberg had forecast a 0.5% increase in spending. Consumers are more confident due to the biggest employment gains since 1999 and the lowest gasoline prices in five years.

“We have very solid momentum entering 2015,” says Michael Gapen, chief U.S. economist for Barclays PLC. “Labor markets are doing better, the consumer has a more favorable outlook for the economy and their own incomes, and they’re acting on it.”