(NEW YORK) — An improving job market gave a boost to consumer spending figures last month. The Commerce Department says consumer spending rose 0.7 percent in February, despite payroll tax hikes.
Consumer purchases make up about 70 percent of the economy.
Economists don’t expect the trend to continue, though. When government spending cuts kick in this month, Americans across the country could feel the effects.
We won’t see the markets react to the report until next week. The financial markets are closed for Good Friday.
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Ahiza Garcia and Jackie Wattles, CNN Newswire
Heather Kelly, CNN Newswire