Consumers across the nation stepped up spending in March after dismal spending in the beginning of the year, due to the severely harsh winter weather. Retail Sales rose by 1.1% last month, the biggest gain since September 2012, while February’s 0.7% rise was revised up from 0.3%. Retail Sales account for 1/3 of consumer spending and consumer spending accounts for about 2/3s of the U.S. economy.
Home loan lending declined in the first quarter of 2014 due to rising interest rates and home prices. Total lending came in at about $226 billion, the lowest level since 1997 and less than one-third of the 2006 average. Home loan rates are up from the best levels seen early in 2013 after the Federal Reserve began to taper its massive stimulus program. Wells Fargo recently reported that its home-loan originations fell to $36 billion in the first quarter after it exceeded $100 billion for seven straight quarters through June 2013.
Banking giant Citigroup reported first quarter earnings of $3.9 billion or $1.30 per share, easily beating the $1.14 per share estimated by Thomson Financial Research. The gains were due in part to solid performances from its consumer and international businesses. In addition, the bank also grew both loans and deposits, while holding the line on its expenses.