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But whether that leads to stronger consumption and economic growth depends on whether the cash is saved or spent.
Germany's federal statistics office and several analysts attributed the boom in Germany to stronger consumption, investment and activity in the construction industry after a severe winter.
Consumers are gaining more from cheap oil than they are losing from falling stock prices, so the net effect of recent financial turmoil on consumption should be positive – and stronger consumption should feed through to business revenues.
PARIS — Bolstered by stronger consumption and investment in Germany as well as growth in France, Europe broke out of recession in the second quarter, ending its longest postwar contraction, official data showed on Wednesday.
"With housing activity a good leading indicator for durable consumption, and the economy balanced two to three quarters since the start of monetary easing, housing gains may point to stronger consumption ahead," Peter Kretzmer, senior economist at Banc of America Securities, wrote to clients.
Consumers' faith that the economy is about to rebound may be weakening.Optimists, in contrast, point to lower energy prices and the much trumpeted $38 billion of tax rebate cheques as good reasons to expect stronger consumption for the rest of the year.
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Scrambling The island view Feeling too good ReprintsEven without these windfalls, the conditions are ripe for strong consumption growth this year and next.
Having said that, you still had very strong consumption on the part of the luxury consumer — it wasn't as though it was flailing about".
That would certainly be my own view, and it would be consistent with the strong consumption figures if it were so.
Economists had expected strong consumption growth in 2015: Americans have seen a windfall from a halving of the price of oil and outstanding consumer credit has grown for 42 straight months.
Consumer spending has not fallen in any month since June 1996.This unexpectedly strong consumption helped the economy grow by 3.5% in the year to the third quarter, faster than most economists had forecast.
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