Thursday May 1, 02:00 PM
US consumer spending rises 0.4% in March
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WASHINGTON (AFP) - US consumer spending rose 0.4 percent in March from the prior month, while household income climbed 0.3 percent, the Commerce Department said Thursday.
The March spending increase was the strongest since January and double analysts' consensus forecast of a 0.2 percent gain. The income increase was slightly below market expectations of 0.4 percent.
Consumer spending, the driver of growth in the world's biggest economy, sharply accelerated from February's meager 0.1 percent gain. Household income in February had climbed 0.5 percent from January.
An inflation gauge in the report, the personal consumption expenditures (PCE) index, showed consumer prices rose 0.3 percent in March, after 0.1 percent in February.
The core PCE reading, which excludes volatile food and energy costs, rose 0.2 percent March, after 0.1 percent in the prior month, exceeding expectations of a 0.1 percent rise.
The overall and core PCE increases were the largest since January.
On a 12-month basis, inflation was up 3.2 percent in March, after 3.4 percent, while core inflation edged up to 2.1 percent, from 2.0 percent.
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