US consumer spending rose 0.4 percent in August beating the predicted 0.3 percent. This marked the second straight month where spending rose and gives retailers hope that the upcoming holiday shopping season could prove better than believed previously.
“Consumers are doing OK, they are not retrenching, but neither are they splurging,” said Sal Guatieri, a senior economist at BMO Capital Markets Inc. in Toronto. “This sets us up for a better holiday-shopping season than the past few years. The recovery is on track, but remains lackluster.”
Source: Bloomberg