Brisk Holiday Boosts Consumer Spending For 2010 : NPR
Americans spent at the fastest pace in three years in 2010, boosted by a strong finish in December.
Consumer spending rose 0.7 percent in December, the sixth straight monthly increase, the Commerce Department reported Monday. Households saw their incomes rise 0.4 percent, the same as November.
For all of 2010, consumers boosted spending 3.5 percent. That was the best performance since a 5.2 percent rise in 2007, before the recession began.
The government reported Friday that consumer spending rose at a 4.4 percent rate in the final three months of 2010 — the most since 2006 and helping retailers to the best holiday shopping season in that time.
Economists expect a cut in Social Security taxes will lift January’s spending and incomes even further than last month.