Rising consumer spending in America and slowing the increase in inflation

WASHINGTON (Archyde.com) – U.S. consumer spending rose more than expected in April as household purchases of goods and services increased, while the rise in inflation slowed, potentially supporting economic growth in the second quarter amid growing fears of a recession. Consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.9 percent last month. Data for March was revised upwards to show spending increasing 1.4 percent instead of 1.1 percent as previously reported. Consumers have increased their demand for new purchases of cars, clothing and recreational goods, as well as home furnishings and equipment. Demand for goods remains strong even with increased spending on services. Consumer spending on dining out, travel, housing and utilities has also increased. Economists polled by Archyde.com had expected consumer spending to rise 0.7 percent. Spending was buoyed by massive savings and a huge wage hike as companies scramble to fill 11.5 million jobs, a record number, by the end of March. The Fed’s tightening monetary policy approach, as it struggles to bring high inflation back to its 2% target, has raised fears of a recession, which has led to a sell-off in stocks and a surge in US Treasury yields and the dollar. .