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Economists See Bright Consumer Outlook

Wall Street Journal (06/11/15) Kathleen Madigan

The healthy labor market is prompting consumers to spend, according to 66 economists polled by the Wall Street Journal, which likely will fuel the overall economy. Inflation-adjusted household spending is forecast to increase 2.7% this quarter and more than 3% in the third and fourth quarters, up significantly from the 1.8% gain realized during the winter.

Retail sales rose 1.2% in May. Excluding autos, sales rose 1%.

“Consumers are more secure in their jobs and that makes them more ready to spend,” says Joseph Carson of AllianceBernstein. The record level of job openings means businesses will continue to hire new employees, he says.