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Fatter Paychecks Set to Perk Up U.S. Growth as Consumer Rebounds

  • Economists confident expansion will pick up after weak reading
  • Temporary factors depressed first-quarter GDP figures
Shoppers browse shoes at a Sam Edelman store inside the Oculus shopping mall in New York, U.S., on Thursday, April 13, 2017. Bloomberg is scheduled to release U.S. weekly consumer comfort figures on April 27.
Photographer: Stephanie Keith/Bloomberg

Weak consumer spending slowed the U.S. expansion to a crawl in the first quarter, a setback economists view as temporary as wage gains buttress household confidence.

Americans spent at the slowest pace since 2009, while a pickup in inflation ate into their income growth, the Commerce Department’s gross domestic product data showed Friday. But a separate report offered a sign that compensation could be perking up amid healthier overall demand, with wages and salaries rising at the fastest pace in almost nine years.