NYT/AP: U.S. Consumer Spending Rose Solidly in February

[DeepModem Mom]

U.S. Consumer Spending Rose Solidly in February
By THE ASSOCIATED PRESS

Published: March 31, 2005


WASHINGTON (AP) -- Americans' incomes, bolstered by strong gains in hiring, rose by 0.3 percent in February while consumer spending climbed at an even faster pace of 0.5 percent, the government reported Thursday.

The Commerce Department said the gain in spending followed a much smaller 0.1 percent increase in January and reflected the fact that auto sales rebounded last month after having fallen in January.

The 0.3 percent rise in incomes was attributed to a surge of 262,000 new jobs in February, the biggest increase in four months. Further solid gains in both incomes and consumer spending are expected in the months ahead as the consumer continues to be a driving force in the economy.

In a second report, the Labor Department said that the number of Americans filing new claims for unemployment benefits rose by 20,000 to 350,000 last week. It was the highest level in 11 weeks. However, the four-week moving average for claims rose by a more modest 8,500 to 336,000 last week, a level still low enough to signal continued job creation in the economy.

Analysts are expecting another strong gain in employment of around 220,000 jobs when the March jobs performance is reported on Friday....


http://www.nytimes.com/aponline/business/AP-Economy.html

[madhat]

1. Is this supposed to be good news or bad?

We spend, we face credit card debt, we go bankrupt.

We don't spend, the economy tanks, the country goes bankrupt.

Which choice?

[ClintonTyree]

2. And how much of it was on credit?

They don't address that, do they?

[Danmel]

3. Is that figure inflation adjusted?

I know I spent more, but not because I was buying more!