Consumer spending rebounded in line with expectations in April, according to the Commerce Department.
Soft spending was a major drag on economic growth in the first quarter. This increase in April suggests that the largest contributor to the economy is improving in the second quarter.
Personal spending as well as personal income rose by 0.4%. Real personal spending in March was revised up to 0.5% from 0.3%.
The report on Tuesday also included personal consumption expenditures, a gauge of household spending that the Federal Reserve prefers to use to track price changes, or inflation.
Excluding the volatile costs of food and energy, the core PCE deflator rose 1.7%, as forecast.
Personal saving as a share of disposable income held at 5.3% for a third straight month.
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