Home > News Updates > Financial News > World Economy
U.S. Consumer Spending Rises to Five-month High in April
 

U.S. consumer spending rose to five-month high in April, pointing to a pickup of U.S. economic growth in the second quarter of the year, the U.S. Commerce Department said Tuesday.

Personal spending rose 0.4 percent in April from the previous month, the biggest monthly gain since December, the Commerce Department said. When adjusted for inflation, personal spending edged up 0.2 percent last month.

Meanwhile, personal income also rose 0.4 percent in April from the previous month after increasing 0.2 percent in March.

The price index for the personal consumption expenditure (PCE), a gauge for the inflation level preferred by the U.S. Federal Reserve, increased 1.7 percent in April from a year earlier.

The core PCE price index, excluding volatile food and energy, increased 1.5 percent from a year ago, still below the central bank's target of two percent.

As consumer spending is the key driver of the U.S. economy, the upbeat consumer spending data in April might suggest a pickup of U.S. economic growth in the second quarter of the year.

The U.S. economy grew at an annual rate of 1.2 percent in the first quarter of this year, lower than the 2.1 percent growth in the previous quarter, according to the Commerce Department.

Despite the subdued inflation, the Federal Reserve is still expected to increase the interest rates soon, most likely at its June policy meeting.

"With continued strength in the labor market, economic activity regaining momentum and a brighter outlook abroad, it would be appropriate soon to see the federal funds are moving closer to its neutral level," Fed governor Lael Brainard said Tuesday, adding the Fed's interest rate hikes would be "well under way."


(www.chinaview.cn 2017-05-31)
Close