Robust consumer spending, an uptick in factory production and firming inflation are pointing to a healthy start in 2017 for the U.S. economy and another interest-rate increase by the Federal Reserve, potentially as soon as next month.
The Commerce Department on Wednesday reported stronger-than-expected growth in retail sales in January, and the Fed reported factory output increased last month. The Labor Department said a closely watched gauge of U.S. inflation rose to its highest annual level in nearly five years, the latest sign that years of sluggish price growth could be coming to an end.
