Shoppers lose their power in 2011, economists say (AP)

WASHINGTON — spent much consumers during the holiday period and should follow this year. Economists say that will be emboldened to expand and hire.

Americans spent more in 50 days before Christmas than expected retail analysts. Expenditures have increased at the fastest rate since 2006 - the surest sign, but they are becoming less frugal as the economy rebounds.

"It was the consumer who was afraid to spend which retained the economy and businesses to hire," said Joel Naroff Naroff Economic Advisors. "This cycle starts to break."

Normally in January, shoppers withdraw. But they are not likely this year. Economists say tax cuts approved by Congress, the rising stock market, a slow but steady increase in hiring and growth at will by the banks to lend support expenditure by consumers.

"I don't think consumers will suffer a hangover after Christmas," said Mark Zandi, Chief Economist at Moody's Analytics. "They will hang hard and spend more aggressive in 2011."

Zandi believes consumer spending will rise 3.6% in 2011, two times faster than in 2010. Which could propel the economy to grow approximately 4% of the Zandi expects 2010 to 2.8%. The Government report on the growth of the fourth quarter of 2010 was released this month.

Other economists expect economic growth closer to 3.5% this year.

The strongest growth should lead companies to add 2.9 million jobs this year, from $ 1.1 million planned for last year, said Zandi. Who runs the unemployment rate over 9% in 2011, an average of 9.5% planned for all of 2010.

With the exception of the holiday sale, auto, shopping within 50 days before Christmas totalled 584 billion, according to MasterCard SpendingPulse. It was 5.5% higher than in 2009, the biggest increase since 2006.

October 31-January 1, back in stores open at least a year rose 3.8% compared to last year, according to an index compiled by the International Council of Shopping Centers. Is the biggest increase since 2006, when the measure increased by 4.4%.

Despite a depressed housing market, rising energy prices and unemployment at 9.8%, economists say they think that spending momentum will carry in 2011.

Consumers have inflated expenses a solid 0.4% in December 2009, but only 0.1% in January 2010. This year, Zandi expects 0.4% two months.

Working Americans will begin to see more money in their first paycheck this year because the income tax Act reduced social security taxes.

Index stock standard & poor 500 increased 20 percent four months of the year. Rising stock prices have stimulated the richness, makes people more willing to spend.

"We believe that this will be a very strong January for retailers," said Gary Stibel, CEO of the New England Consulting Group, whose clients have included McDonald and Wal-Mart.

In addition to the higher gas and food prices, the economy will face other threats that could derail the forecast should if they worsen:

• Other declines in housing prices and foreclosures more.

• Higher interest rates could push more sales, reduce costly purchases such as cars and make it more expensive for businesses to expand and hire.

• Layoffs and cuts in spending by the difficulty of State and local governments.

The Department of labor reported Thursday that fewer people one application for unemployment since a month in any period of four weeks since July 2008 - lay-offs sign are slowing.

And a survey of December by the Business Roundtable showed that 45% of the CEOs of large companies plan to add jobs within six months, up to 31%, which stated in the fall.

Reason spending is strong is that consumers will save less. Zandi believes they'll save 5.3% of disposable income, down 5.8% last year. Some economists predict as little as 4 per cent.