Tax refunds and money from President Barack Obama’s stimulus plan are giving American consumers a temporary lift, easing the pain caused by the highest unemployment rate in a quarter century, plunging wealth and a lack of credit. Companies from General Motors Corp. to Gap Inc. are relying on incentives and promotions to move merchandise, keeping inflation in check.

“We’re seeing a little bit of a bounce from the consumer after a horrendous holiday season,” said Joshua Shapiro, chief US economist at Maria Fiorini Ramirez Inc., a New York forecasting firm. “The tax refunds have gotten to people in a timely fashion. Once that feeds through, then we’re left with the major negative of the labor market.”

Autos sold at a 9.9 million annual pace in March, up from 9.1 million the previous month that was the lowest since 1981, according to industry figures.

Source: Bloomberg