WASHINGTON (AP) — Consumer spending surged in April by the largest amount in more than six years, led by a big jump in purchases of autos and other durable goods.
Consumer spending rose 1 percent last month after a flat reading in March, the Commerce Department reported Tuesday. Incomes were up a solid 0.4 percent, matching the March gain. Wages and salaries, the most important component of incomes, gained 0.5 percent.
The strong April showing for consumer spending, which accounts for 70 percent of economic activity, is a good sign that the economy is performing notably better this quarter after nearly stalling out at the start of the year. Many economists believe the economy is growing at a 2.5 percent rate, outpacing a 0.8 percent gain in the first quarter.
“American shoppers came racing back to the malls, auto shops and online stores in April,” said Sal Guatieri, senior economist at BMO Capital Markets.
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