Economy, Consumers | featured news

U.S. auto sales rose sharply in November as more confident American consumers spent more on the average showroom purchase, extending a recovery trend for the industry to a sixth month.

Americans earned less last month, the first decline in nearly two years. With less income, consumers could cut back on spending and weaken an already-fragile economy.

Signs that American consumers were pulling back on their spending added to growing concerns about the direction of the economy.

Consumer confidence fell in June to the lowest point since November 2010 on concerns about the slack labor market and sputtering recovery, according to a Conference Board report released on Tuesday.

For the first time in a year, Americans have stopped spending more....

Consumers are saving more and reducing debt, behavior that could lead to a more sustainable economy. Signs of slower growth in the United States, coupled with rising fears over the European debt crisis and other unsettling developments, are fueling concern about whether the sputtering U.S. recovery could stall or even enter a new downturn.

Consumers felt better about the short-term outlook for the economy in April as expectations about the pace of inflation and concerns about the labor market eased.

Consumers spent more in March on furniture, electronics and at restaurants, but also paid more for gas. Retail sales increased 0.4 percent last month, the Commerce Department said Wednesday. It was the ninth consecutive monthly gain.

The results released reinforced reports over the weekend that consumers shopped, spent and were buying non-necessities again.

Retailers should see their best Christmas sales in four years as consumers now show some inclination to spend money despite a minimal recovery in the economy, according to series of recent forecasts.