US consumer spending surged a strong 0.9 per cent in March, biggest monthly gain in 4 1/2 years
WASHINGTON – U.S. consumers ramped up spending in March at the fastest pace in 4 1/2 years, a sign the economy is gaining momentum after its winter slowdown.
The Commerce Department says consumer spending rose 0.9 per cent, the largest gain since April 2009. The government also revised up its estimate of the spending gain in February to 0.5 per cent from 0.3 per cent.
People spent more on manufactured goods. Autos and furniture led much of the gains, according to a retail sales report released last month.
Income rose 0.5 per cent after rising 0.4 per cent in February.
Higher spending points to stronger growth because consumer activity accounts for 70 per cent of the economy. Harsh weather curbed spending during last quarter as a whole. The economy grew at an annual rate of just 0.1 per cent.
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