Real consumer spending in the USA surged to 2.5% in the latest quarter, significantly higher than the previous quarter’s 0.6%. This represents a substantial increase of 1.9 percentage points, indicating a robust rise in consumer activity.
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The actual figure of 2.5% also surpassed analyst estimates of 1.6%, suggesting stronger-than-expected consumer demand. This positive surprise is likely to boost consumer discretionary and retail stocks, as increased spending typically benefits these sectors. The market impact may be more sentiment-driven in the short term, but sustained consumer strength could influence longer-term growth expectations.