Bad news about the US economy travels fast, but examples of a slowing economy are potentially being blown out of proportion, (CNN) said.Consumer spending declined in January for the first time in nearly two years, CNN report said.The Conference Boards latest consumer survey even showed that the share of respondents expecting a recession in the coming year jumped in February to a nine-month high.But data for the beginning of the year was skewed by temporary forces, such as unusually harsh weather and wildfires. The underlying fundamentals remain solid: Employers continue to add jobs at a healthy pace, unemployment has stayed low and wages are still outpacing inflation, the report said.Those events likely curbed economic activity that month, economists say: Consumer spending fell 0.2%, according to government data, as home construction plunged 9.8%. That triggered a real-time forecast of economic growth by the Federal Reserve Bank of Atlanta to show the economy contracting a sharp 2.4% in the current quarter.CNN quoted St. Louis Fed President Alberto Musalem as saying in a speech Monday that rough weather was likely the culprit behind shoppers pulling back earlier this year, which is why he still thinks that ‘the prospects for continued growth look good.”Part of my optimism about economic activity stems from the labor market, where conditions remain solid,’ Musalem said.The US economy added 151,000 jobs last month, the Labor Department said Friday, as average hourly earnings continued to rise faster than inflation. Unemployment edged higher in February but remained relatively low.Several Federal Reserve officials have recently noted economic uncertainty and signs of slower growth. But none of them mentioned recession worries, CNN said.
