Consumer Spending Continues to Grow
This is an encouraging sign for economic growth.
Consumers, whose behavior plays a crucial role in shaping economic activity, increased their spending in April by a solid 0.3 percent, a good signal that the recovery remained firmly rooted as it entered the current quarter.
The increase, reported yesterday by the Commerce Department, came after a brisk 0.5 percent advance in March. It suggested that consumers continued to do their part to support the economy.
Americans' incomes, meanwhile, rose by a strong 0.6 percent in April, marking the largest gain since January 2001. The growth in income, which followed a 0.4 percent rise in March, was especially encouraging because that is the fuel for future spending. The income and spending figures are not adjusted for price changes.
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