An economic indicator which accounts for two thirds of all U.S. domestic economic activity has staged a rebound in the first two months of the year after a precipitous drop in the previous two quarters.

The first two months of the year show consumer spending, which rose 0.2 percent in February after rising 1.0 percent in January, the Commerce Department said on Friday.

January’s figure was revised upwardly from 0.6 percent.

In the last three months of 2008, spending was down by a 4.3 percent annual rate. In the third quarter, spending fell 3.8 percent.

The positive figures are still inconclusive, according one economist.

“It’s too early to bet on a consumer renaissance, because consumers are still facing severe headwinds from declining employment and reduced wealth. But the worst appears to be behind us,” said Nigel Gault, chief U.S. economist at HIS Global Insight, according to Reuters.

He predicted a 1.0 percent annual rate for the first quarter.

U.S.