U.S. consumer spending jumps in March - MarketWatch

U.S. consumer spending jumps in March - MarketWatch

Consumer spending accelerated in March, the Commerce Department reported Thursday. Consumer spending rose 0.9%, the largest increase since August 2009. Personal income rose a solid 0.5%. Wall Street economists had expected a 0.5% gain for incomes and a 0.7% gain in spending. The savings rate fell to 3.8% from 4.2% in February, the smallest level since January 2013. Excluding inflation, real disposable incomes rose 0.3% for the third straight month in March. Adjusted for inflation, spending rose 0.7%, also the biggest gain since August 2009. The personal consumption expenditure price index rose 0.2% in March compared with February and is up 1.1% in the past year. This is up from 0.9% in February but still well below the Fed's 2% target. The core rate rose 0.2% in March and is up 1.2% in the past year, compared with a 1.1% gain in February.