U.S. retail sales rise strongly; manufacturing output accelerates [Reuters]
Bank of America Corporation (BAC)
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Source: Reuters
spending at restaurants, providing a powerful boost to the economy at the start of the second quarter. FILE PHOTO: Automobiles are shown for sale at a car dealership in Carlsbad, California, U.S. May 2, 2016. REUTERS/Mike Blake The broad rise in retail sales reported by the Commerce Department on Tuesday suggested demand was holding strong despite high inflation and souring consumer sentiment. It assuaged fears of an imminent recession. The economy's underlying strength was underscored by other data showing production at factories accelerated in April. Rising wages as companies scramble for scarce workers and massive savings accumulated during the COVID-19 pandemic are underpinning spending. Consumers are also increasing their usage of credit cards. “Given this show of strength from consumers, speculation that the U.S. economy is in danger of an imminent plunge into recession looks badly misplaced,” said Paul Ashworth, chief U.S. economist at Capital Economics in New York. R
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