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Thursday, September 19, 2019
HomeNewsEconomyConsumer Spending, Personal Income Post Solid Gains in April

Consumer Spending, Personal Income Post Solid Gains in April

People count money at Macy's Herald Square store during the early opening of the Black Friday sales in the Manhattan borough of New York, November 26, 2015. (Photo: Reuters)
People count money at Macy's Herald Square store during the early opening of the Black Friday sales in the Manhattan borough of New York, November 26, 2015. (Photo: Reuters)

People count money at Macy’s Herald Square store during the early opening of the Black Friday sales in the Manhattan borough of New York, November 26, 2015. (Photo: Reuters)

The Commerce Department said Tuesday that consumer spending in April grew at the fastest pace in four months, fueled by a solid gain in personal income. The strong data add greater optimisim to expectations that the economy is poised to rebound after a lackluster start to the year.

Personal consumption, otherwise known as onsumer spending, rose by $53.2 billion (0.4%) in April after a 0.3% rise in March. That’s the best gain since December. Personal income, fueled by gains in private wages and salaries, rose by $58.4 billion, or 0.4% in April.

Consumer spending, which accounts for 70% of economic activity, grew at the slowest pace in seven years in the first quarter (1Q), weighing down gross domestic product (GDP). The economy expanded at a revised 1.2% rate at the start of the year in the 1Q, up from an initial reading of just 0.7%. Business investment and consumer spending levels were higher than previous estimates.

Economists are optomisitic that GDP growth will rebound in the current quarter, shooting up to roughly 3% during April-June.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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