National Post (Latest Edition)
U.S. CONSUMER SPENDING UP 0.6% , BEST IN 5 MONTHS
Americans boosted their spending by 0.6 per cent in April, the biggest increase in five months, while a gauge of inflation remained at the Federal Reserve’s optimal level for a secondstraight month. The Commerce Department said Thursday that last month’s increase in consumer spending was the largest increase since a 0.7-per-cent rise last November. The gain is an encouraging sign that consumer spending is beginning to show life after nearly stalling out at the beginning of the year. Economists are hoping a revived consumer sector will support stronger growth in the current quarter. An inflation measure closely watched by the Fed rose by two per cent in April, compared with a year ago, the second month it has achieved the Fed’s target for inflation after years of chronically low inflation.