Economists revised first quarter US growth forecasts higher after surprisingly strong consumer spending figures released Friday.
Spending rose 0.7% in February compared to 0.6% expected and a 0.4% rise in January. The increased consumption was built on a 1.1% rise in consumer incomes which points to a sustainable increase in spending.
Following the report Barclays raised its Q1 GDP forecast to 3.3% from 2.6% and and Macroconomic Advisers boosted their estimate to 3.5% from 3.2%.
