U.S. Consumer Spending Sees Its Largest Increase in 5 Months
U.S. consumer spending surged by 0.6% in April—the largest increase in five months, according to the Department of Commerce.
Last month’s increase in consumer spending was the largest increase since November 2017, when the country saw a 0.7% rise, the AP reported. This was preceded by a 0.5% increase in March.
The 0.6% increase stands in stark contrast to the very beginning of the year, when the Department of Commerce reported that consumer spending gained a measly 0.2% in January, or a loss of 0.1% when adjusted for inflation.
The rise in spending was accompanied by a 0.3% increase in the purchase of durable goods, as well as a 0.9% increase in spending on non-durable goods.
While consumer spending rose, so did the strength of the labor market; the unemployment rate reached 3.9% in April, a 17-year low, according to the Department of Labor. It also reported on Thursday that the week of May 26 saw a decrease of 13,000 unemployment insurance claims, from 234,000 to 221,000. The department will release a full unemployment report on Friday.