Consumer spending is a very important part of any economy. Economists look at it for clear signs that the economy is picking up,. Today’s numbers in Consumer spending were higher than the forecast. People are spending more than they were last month, meaning business’s should be making more money as well. The median estimate for consumer spending was a rise of 0.3% while the actual number came in at 0.4%, however, there was also some bad news in the economy last month. According to reports, Income in the United States rose only 0.2%, which was less than the forecast 0.3% that economists had expected.

Overall, this does relieve some concern over a double dip recession, at least putting it off for a while, however, until the unemployment rate decreases, there will likely not be any major sustained consumer spending growth in the long run. Inflation also rose slightly, allaying concerns of a deflationary period anytime in the immediate future.