Con­sumer spend­ing in­come up in April

Chattanooga Times Free Press - - BUSINESS - STAFF AND WIRE RE­PORTS

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.

Con­sumer spend­ing rose 0.4 per­cent in April af­ter a 0.3 per­cent rise in March, the Com­merce Depart­ment said Tues­day. It was the best show­ing since De­cem­ber. In­comes also rose 0.4 per­cent, dou­ble the 0.2 per­cent March in­crease.

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, as mea­sured by the gross do­mes­tic prod­uct, ex­panded by just 1.2 per­cent at the start of the year.

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