Economics
U.S. Consumer-Spending Pickup Adds More Juice to Second Quarter
- Inflation holds at 2%, supporting outlook for Fed rate hikes
- Consumption pace may cool in second half as tax benefits fade
U.S. Inflation Holds at 2% as Consumer Spending Tops Estimates
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April’s bigger-than-expected gain in U.S. consumer spending put the economy’s projected second-quarter rebound on track to be even stronger.
Purchases, which account for about 70 percent of the economy, increased 0.6 percent from the prior month, topping forecasts, after a 0.5 percent advance that was more than previously estimated, Commerce Department figures showed Thursday. Adjusted for inflation, consumption had the best two-month advance since 2014.