US Consumer Spending Posts Strongest Gain In 4 Months, While Incomes Flat
Source: Associated Press
Article by: MARTIN CRUTSINGER , Associated Press Updated: April 30, 2015 - 9:20 AM
WASHINGTON — U.S. consumers boosted spending in March by the largest amount in four months, a hopeful sign that this key sector of the economy is reviving after a frigid winter.
Consumer spending increased 0.4 percent in March, the strongest gain since a similar increase in November, the Commerce Department reported Thursday. Spending fell in December and January before climbing a modest 0.2 percent in February.
Consumer spending, which accounts for 70 percent of U.S. economic activity, should help bolster an economy that barely grew in the first quarter. The data, combined with other reports Thursday that showed rising wages and a 15-year-low in unemployment aid applications, suggest that while the economy started off slowly, it gained momentum as winter turned to spring.
Today's reports "all point to an economy that is doing a lot better than the near-stagnation in the first quarter GDP suggests," said Paul Ashworth, chief U.S. economist for Capital Economics.
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