U.S. consumer spending increased more than expected last month and inflation also picked up, which could see the Federal Reserve keeping interest rates higher, reports Reuters.
Consumer spending rose 0.8 percent last month, said the Commerce Department, Friday. Spending gained 0.1 percent versus March.
Economists polled by Reuters had forecast consumer spending, which accounts for more than two-thirds of U.S. economic activity, rising 0.4 percent.
“Though consumer spending accelerated at its fastest pace in nearly two years in the first quarter, much of the growth was concentrated in January. Weakness in February and March set consumer spending on a lower growth trajectory heading into the second quarter,” according to the report. Full Story
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