US consumers spent solidly in April and personal income rose for the fifth straight month, the government said today in a report showing shoppers are helping to underpin the economic recovery.
Consumer spending, also up for the fifth month in a row, rose 0.5 per cent to $7.32 trillion in April after gaining 0.3 per cent the previous month, the US Commerce Department said in a report.
The number was slightly lower than analysts' expectations of a 0.7 per cent increase.
Spending on durable goods - items designed to last three years or more, like cars or washing machines - jumped 1.4 per cent after a decline of 0.2 per cent in March.
Personal income grew 0.3 per cent in April, matching analysts' expectations, compared to a 0.4 per cent increase the previous month.
The rise in consumer spending, which accounts for two-thirds of economic activity, was good news for the economy as it gets back on its feet after the recession that began in March last year.