U.S. retailers have been reporting higher than expected sales this month as the holiday season is now fully underway. Consumer spending among small businesses has reached its highest peak in three years, which may be an indication that the economy is improving, according to Bloomburg.
"There's no question this will be the strongest quarter for consumer spending since before the recession," Chris Low, chief economist at FTN Financial in New York, told the news source. "The economy has pretty good momentum going into the new year."
Commerce Department figures showed a .8 percent gain in purchases this month, which comes on the heels of a 1.7 percent jump in October. Both of these numbers were higher than those forecast by most economists.
The Federal Reserve released a statement on December 14 stating that household spending is "increasing at a moderate pace," but is somewhat hindered by high unemployment and "tight credit."
Many U.S. citizens may be cutting back on their spending because they hold credit card debt. Those seeking to pay off their balances should stop using credit cards altogether when making purchases, according to MSNBC.