U.S. Consumer Spending Sees Its Biggest Increase In More Than Six Years

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.