Consumer spending advanced at the fastest pace in nearly seven years in April, the latest sign of stronger economic growth.

Personal spending, which measures how much Americans paid for everything from raincoats to restaurants, increased 1.0% in April, the Commerce Department said on Tuesday. That was the biggest jump since August 2009.

Consumer spending on durable goods was particularly robust in April, likely reflecting healthy auto sales during the month.

Personal income, including earnings from wages and other sources, rose.

Household spending accounts for more than two-thirds of economic output in the U.S. and has been a driving force for the expansion for more than five years.

Gregory Daco, head of U.S. macroeconomics at Oxford Economics, said, “This is good news for the economy as solid employment, firming wage growth and upbeat confidence should support the upbeat momentum."

Tuesday’s report also showed steady gains in income, suggesting the labor market remains robust.





http://www.wsj.com/articles/u-s-consumer-spending-jumps-1-in-april-1464697915