Report: Consumer spending rises more than expected
Washington, D.C. -- A report released Monday by the Commerce Dept. said that March consumer spending in the U.S. advanced more than forecast – rising 0.2% after a 0.7% increase in February.
The bigger-than-expected gain reflected a jump in services, such as utilities, due to cooler-than-usual temperatures. On average, Bloomberg economists expected spending to be flat in March. “It’s a relatively decent showing for spending, but consumers won’t be able to sustain the current pace if income growth continues to disappoint,” Millan Mulraine, an economist for TD Securities USA, told Bloomberg.
Incomes increased 0.2% in March after climbing 1.1% in February.