US consumer spending increases 0.6 percent in April

The consumer spending in the United States increased by 0.6 percent in April, down from a big 0. 9 percent jump in March, the Commerce Department reported on Friday.

The consumer spending accounts for about two-thirds of total US gross domestic product (GDP) and is the major force in pushing the economy forward. The spending increased at a 3.6 percent pace in the first quarter and the increase in April is a sign that the US economy continued to grow at a moderate pace in the current quarter.

The report also showed that US personal income increased 0.7 percent following two 0.5 percent gains in February and March. It was the strongest showing since a 4 percent jump in December that had been fueled by a big dividend payment from computer software giant Microsoft.

Disposable incomes, the amount that people have left to spend after paying taxes, rose by 0.5 percent in April, up slightly from two months of 0.4 percent gains.

Source: Xinhua