Consumer Spending Rises at Fast Pace
POSTED: Monday, March 28, 2011 - 7:58am
UPDATED: Tuesday, March 29, 2011 - 4:17pm
The U.S. Commerce Department said consumer spending rose in February at the fastest pace in four months.
The Commerce Department said that consumer spending jumped 0.7 percent in February, while personal incomes went up by 0.3 percent. That was after a 1.2 percent income increase in January.
However, the department also noted that a big part of the increase went to cover higher gas prices. Economists are worried that if energy costs keep going up, it will cut into household budgets, and leave people with less money to spend on other items.