US consumer spending continued to grow in April, albeit at a slower pace, fueling optimism for a recovery.
According to the Associated Press, recent data from the Commerce Department shows consumer spending up 0.5% in April. That’s down from the 4.7% increase in March, an increase that was largely fueled by stimulus spending.
Nonetheless, a 0.5% increase indicates the economy is continuing its recovering from the pandemic recession, and provides evidence that consumer confidence is headed in the right direction.
Interestingly, individual incomes dropped a whopping 13.1% in April, but that is another data point largely caused by stimulus checks. With many Americans receiving a boost in March, a drop in April was to be expected.
Overall, the government estimates the economy grew 6.4% in the January to March quarter.