Consumer spending, incomes and savings advanced in March
Consumer spending climbed in March after the biggest gain since August 2009, and incomes picked up, indicating the biggest part of the economy will help sustain the expansion, according to the U.S. Department of Commerce, Bloomberg reported.
Household purchases increased 0.3 percent, after a revised 0.9 percent gain the prior month that was stronger than first reported, according to the Commerce Department.
The median estimate of 72 economists surveyed by Bloomberg News called for a 0.4 percent rise.
Incomes advanced 0.4 percent, the most in three months, and the savings rate rose to 3.8 percent from 3.7 percent. Disposable income, or the money left over after taxes, climbed 0.2 percent after adjusting for inflation, the first gain this year.
The increase in March incomes followed a 0.3 percent gain the prior month that was revised higher.
Projections for spending ranged from increases of 0.2 percent to 1.2 percent. The February reading was revised from a gain of 0.8 percent.
Spending adjusted for inflation, the figures used to calculate gross domestic product, rose 0.1 percent after a 0.5 percent increase. Purchases of durable goods fell 0.2 percent March after a 2.1 percent surge in February. Services spending was little changed after a 0.4 percent gain.