Consumers, Economic Recovery | featured news

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

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.

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.

U.S. consumer sentiment weakened in early July to its lowest in 11 months on a resurgence in fears about the economy, a year since the recovery began, a private survey shows.

Consumers spent more on gasoline and a wide range of other goods, data showed, raising hopes of a self-sustaining economic recovery.

Federal Reserve Chairman Ben Bernanke said Friday a government program intended to spark lending to consumers and businesses is still necessary even with other emergency lending programs winding down as the economy recovers.

Consumer sentiment rose more than expected in August, an indication that Americans' pessimism about the economy may be lifting.

U.S. consumers spent more in June and pending sales of previously owned homes also rose, data issued on Tuesday showed, but the biggest drop in incomes in four-and-a-half years pointed to a slow recovery from the worst recession in decades.