U.S. Consumer Spending Levels, Natural Increase

Of the United States reported, the level of consumer spending in the U.S. unexpectedly rose in March as low inflation supports the purchasing power of domestic consumers, a good signal for the economy lost momentum towards the end of the first quarter.
 
As reported by MarketWatch, Monday (29/04/2013) The U.S. Commerce Department on Monday said consumer spending increased by 0.2% last month following a revised increase of 0.7% in February.
Economists expect consumer spending which covers about 70% of economic activity flat last month. After penyesuasian for inflation, spending rose 0.3% after rising by the same amount in the month of February.
 
This report strengthens the hope that the growth rate in the second quarter may not be later had feared this moment. Bertumbuhan economy with an annual rate of 2.5% in the first quarter of this year. Output in the first quarter driven by a 3.2% increase in consumer spending, although the payroll tax cut of 2% which ended in January.


On the other hand, this report shows that a low level of inflation, the price index for consumer spending fell 0.1%, the first decline since last November.
Low inflation gives central bank room to maintain its monetary policy measures are very loose. Fed officials will meet this week to assess the health of the economy. Fed is expected to maintain the pace of bond purchases at 85 billion dollars per month.
 
Monitored while the U.S. dollar weakened against the yen on Monday. This happens after data showed that U.S. economic growth below analysts' estimates in the early quarter of this year.
U.S. Dollar last quoted at 97.86 yen, down by 0.1% from last Friday and trading at 4-year high at 99.95 yen rate that occurred on April 11.