Consumers, Good News | featured news

U.S. consumers increased their spending in December at a slower pace, while their income grew by the largest amount in eight years. Income surged because companies rushed to pay dividends before income taxes increased on high-earners.

Consumer sentiment rose to its highest level in more than five years in November as consumers felt more optimistic about employment prospects and the outlook for the overall economy, a survey released on Friday showed.

The slowing economy could provide a bright spot for consumers: gasoline at $3 a gallon — or less — by autumn.

Spending rose by the most in seven months, raising hopes that first quarter economic growth may have been stronger than expected.

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.

U.S. consumers spent more on autos, clothing and furniture in September to boost retail sales by the most in seven months.

General Motors Co and Chrysler Group reported September U.S. auto sales gains of at least 20 percent, a sign that consumers have returned as vehicle inventories have risen after being crimped by the March earthquake in Japan.

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.