April showers bring — more spending

April showers bring — more spending

Americans shelled out for restaurant meals, spas and travel again in April, pushing consumer spending 0.5% higher in the month. It's dwarfed by March's 4.7% gain but still a solid increase, given that establishments have struggled with shortages of supplies and labor to reopen. Services account for the bulk of U.S. consumer spending, which in turn makes up two-third of gross domestic product. Economists are expecting economic growth to accelerate to 10% in the second quarter amid a pickup in spending on services.

 

  • The personal consumption index jumped an annual 3.6% in April, the Commerce Department said, above the Federal Reserve’s 2% inflation target.

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