The American consumer has returned in full force.

Consumer spending has climbed 0.6 percent in the last two months, according to figures from the U.S. Commerce Department. Households have splurged on major appliances, 4×4's, televisions and clothing, boosting the economy at the fastest pace in 11 years.

According to Michael Gapen, the New York-based chief U.S. economist for Barclays Plc., “We have very solid momentum entering 2015.” He added, “Labor markets are doing better, the consumer has a more favorable outlook for the economy and their own incomes, and they're acting on it.”

With positive employment numbers, the biggest since 1999, and the lowest gasoline prices in five years, Americans are positive on the nation's economic expansion and believe that the recession is finally subsiding. A substantial growth in America would go a long way in stabilizing a global economy struggling to find a balance as Europe continues to plod along and emerging markets cool down.

GDP

According to revised Commerce Department figures, U.S. gross domestic product grew at a 5 percent annualized rate from July through September, the biggest advance since the third quarter of 2003 and up from a previously estimated 3.9 percent. Stocks moved up, sending the Dow Jones Industrial Average above 18,000 for the first time and the Standard & Poor's 500 Index climbed 0.2 percent to 2,082.17 at yesterday's close.

The report also showed that incomes advanced 0.4 percent last month, a result of increased wages and salaries as employment improved and more people returned to the work force.

Today's GDP report also showed that household purchases, which account for almost 70 percent of the economy, increased at a 3.2 percent annual rate in the third quarter of 2014 compared with a previously reported 2.2 percent. The adjustments reflect stronger spending on health care, recreation and financial services. Outlay on durable and non-durable goods was also adjusted.