The Commerce Department says that consumer spending surged last month, posting the largest gain in seven months. Income also rose sharply, boosted by a big government farm subsidy. From New York, Marketplace's Jessica Smith has details. If only the U.S. economy were that easy to read. The latest economic report shows a 1.1 percent increase in income, and an 0.8 percent rise in consumer spending.
Consumers are only two-thirds of the economy.
They're the single biggest piece of it, but still only two thirds. We are seeing signs of the soft landing. And the consumer is two-thirds of the economy. Which means central bankers and financial markets will be on the watch. Obviously not higher fuel prices or the fall in hi-tech stock prices.