Franchise News
U.S. Consumer Spending Sees Its Biggest Increase In More Than Six Years
Strong consumer spending habits may lead to the Federal Reserve to raise interest rates again as early as June.
The U.S. economy is picking up speed heading into the summer months. According to a Reuters article featured on Fox Business, consumer spending—which accounts for more than two-thirds of the U.S. economy—recorded its biggest increase in April in more than six years.
On Tuesday, the Commerce Department said that U.S. consumer sending jumped one percent last month, beating economists’ expectations of a 0.7 percent increase. That’s the biggest spike in spending since August 2009. The spending increase occurred thanks to households buying more long-lasting manufactured goods like automobiles as well as a variety of other goods and services.
Personal income jumped by 0.4 percent in April with wages and salaries being bumped up by 0.5 percent, contributing to the increase in consumer spending as well. The personal consumption expenditures (PCE) price index also rose 0.2 percent last month, excluding the food and energy markets.
Strong consumer spending habits in April shows that the economy may be bouncing back after a lackluster first quarter. That means the Federal Reserve could raise interest rates again as early as June.
To read the full Fox Business article, click here.
Don’t Miss the Next Big Franchise Story
Sign up for the 1851 Franchise newsletter to get our biggest stories before everyone else
By signing up, you agree to our user agreement (including class action waiver and arbitration provisions), and acknowledge our privacy policy.
About the Author
Cassidy McAloon
FollowCassie has over five years of digital and traditional media experience. She joined NLA after working as a television news producer in both Milwaukee and Chicago, and now specializes in aligning strategies across the board for her clients, ultimately building buzz and telling compelling stories through content marketing, social media, digital campaigns and traditional PR.
Cassie has a Bachelor of Arts in Broadcast and Electronic Communications from Marquette University. In her spare time, Cassie enjoys traveling and exploring what new cities have to offer in addition to spending time with her friends and family.
