US consumer spending surges; inflation creeping up
U.S. consumer spending recorded its biggest increase in more than six years in April and inflation rose steadily, more signs of an acceleration in economic growth that could persuade the Federal Reserve to raise interest rates again as early as June.
The Commerce Department said on Tuesday consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged 1.0 percent last month as households bought automobiles and a range of other goods and services.
Consumer spending in March was revised down to show it being flat instead of the previously reported 0.1 percent gain.
Last month’s increase was the largest since August 2009 and beat economists’ expectations for a 0.7 percent rise. When adjusted for inflation, consumer spending shot up 0.6 percent, the biggest gain since February 2014, after being flat in March. Read more