---
title: "U.S. Consumer Spending Sees Its Biggest Increase In More Than Six Years"
url: https://burnaze.com/article/973ee648-10cc-47df-9adc-732f0ef3fc4f
source: "1851 Franchise"
original_url: https://1851franchise.com/us-consumer-spending-sees-its-biggest-increase-in-more-than-six-years-4778
category: "Finance"
topics: ["Finance & M&A"]
published: 2016-05-31T15:10:41.000Z
modified: 2026-11-01T04:15:17.619Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/5e5d2450062da4314707ac8a0211660e2106160531101144.jpg
---

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

**TL;DR:** The U.S. economy is picking up speed heading into the summer months with consumer spending recording its biggest increase in April in more than six years. Consumer spending jumped one percent last month, beating economists' expectations of a 0.7 percent increase.

*originally published in 1851 Franchise on 2016-05-31. [Read the original](https://1851franchise.com/us-consumer-spending-sees-its-biggest-increase-in-more-than-six-years-4778).*

## Story

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.

## Entities

- 1851 Franchise (publication)
- General (sector)
- United States (location)
- Fox Business (company)
- consumer spending (topic)
- interest rates (topic)
- Reuters (company)
- Commerce Department (regulator)
- economy growth (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/us-consumer-spending-sees-its-biggest-increase-in-more-than-six-years-4778). Summarized by Burnaze (https://burnaze.com/article/973ee648-10cc-47df-9adc-732f0ef3fc4f).