U.S. factory, spending data hint at improving economy

U.S. factory activity rebounded last month from an eight-month low and consumer spending increased more than expected in January, suggesting the economy was regaining some strength after abruptly slowing in recent months. The signs of a comeback, also evident in a surprise gain in construction spending, should bolster the Federal Reserve's resolve to keep scaling back its massive monetary stimulus. "The economy is beginning the slow process of digging its way out of the weather-induced slowdown of recent months," said Millan Mulraine, deputy chief economist at TD Securities in New York. Manufacturers said cold weather was still hindering operations: hampering logistics, causing back-ups at ports and disrupting supplies of raw materials.

by via Yahoo! Finance: Top Stories