WASHINGTON (AP) — Americans increased their spending in April at the fastest pace in four months, bolstered by a solid gain in incomes. The strong results underscored expectations that the economy is poised to rebound after a lackluster start to the year.
The Commerce Department says consumer spending rose 0.4 percent in April after a 0.3 percent rise in March. It was the best showing since December. Incomes rose 0.4 percent.
Consumer spending, which accounts for 70 percent of economic activity, grew at the slowest pace in seven years in the first quarter. That was a key reason the economy expanded by just 1.2 percent at the start of the year. Economists are hopeful growth will rebound to around 3 percent in the current April-June quarter.