Consumer spending swelled in February by the most in five months due to rising incomes, indicating a strengthening job market is pushing market demand.
Household purchases gained 0.7%, up from 0.4% a month prior, according to the U.S. Department of Commerce Bureau of Economic Analysis.
Additionally, personal income increased 1.1% to $143.2 billion and disposable personal income (DPI) also rose 1.1% to $127.8 billion.
Strength in purchases is one of the many reasons economists expect a significant pick up this quarter.
"While individuals are coping with higher payroll taxes, aggregate personal income posted a sizeable gain in February and personal spending rose significantly," according to analysts for Econoday.
They added, "Despite headwinds of high unemployment, high gasoline prices, and worries about Europe and fiscal sequestration, the consumer (at least those employed) is voting with the wallet and so far in 2013, the consumer is moderately positive. Apparently, it is relative-the economy is much healthier in 2013 than in 2008."