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2013 could be huge year for consumer spending

Jan 22, 2013 Walt Wojciechowski

November and December produced positive consumer credit reports, and the good news could continue into 2013.

"I see momentum building," Joel Naroff, chief economist at Naroff Economic Advisors, recently told The Associated Press. "If Washington makes the moves it needs to make, then the economy should pick up speed next year."

According to a recent article by The Slant, 2013 could also be a breakout year for debt collectors and short term lenders, as consumer spending appears to be trending in the right directions.

The Commerce Department reported that consumer spending increased 0.5 percent in December compared to November. This marked the second consecutive month of growth - in November, consumer spending achieved a 0.4 percent increase - following a 0.1 percent decline in October, which many experts believe was at least partially due to Hurricane Sandy.

Even more encouraging, though, is how many industries have been performing well. Automakers fared the best in December, achieving their best sales number since 2007, while restaurant spending grew 7.7 percent.

According to Gallup, December marked the best consumer credit reports in four years, with both high and low-income Americans spending more. On average, people spend $10 more per day than they did in November.