U.S. consumer spending increased more than expected in April, a further sign that economic growth was regaining momentum early in the second quarter, while inflation continued to rise steadily.
The Commerce Department said on Thursday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.6 percent last month, the biggest gain in five months. Data for March was revised up to show spending rising 0.5 percent instead of the previously reported 0.4 percent increase.
Economists polled by Reuters had forecast consumer spending advancing 0.4 percent. Spending was boosted by purchases of gasoline and other energy products. Nondurable goods purchases increased 0.9 percent. Outlays on services rose 0.5 percent, lifted by demand for household utilities.