By Eric Morath | The Wall Street Journal
Consumer-spending growth allowed the U.S. economy to dodge contraction territory late last year, and the source of strength was not the wealthy, but rather low-income consumers and millennials.
Younger consumers and those with lower incomes punched above their weight class in the final months of 2015 fueling a 2.35% increase in year-over-year spending in December in 15 U.S. metro areas, according to data released today by the J.P. Morgan Chase & Co. Institute. Those same groups were leading contributors to consumption gains in October and November.
Separate government data showed consumer spending more than accounted for all economic output gains in the fourth quarter, counteracting drags from weak business investment and a slowdown in international trade.
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