US consumer spending surges 0.9% in March

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US consumer spending surges 0.9% in March
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U.S. consumer spending surged 0.9% in March, the biggest gain in nearly a decade, as inflation pressures remain non-existent.

The March gain was the biggest monthly increase since August 2009, the Commerce Department reported Monday. That's a marked improvement after three months of lackluster readings in this key segment of the economy. Consumer spending accounts for 70% of economic activity.

The big jump in consumer spending is encouraging because it suggests that the overall economy had solid momentum going into the April-June quarter. The 0.9% March jump in spending followed a sharp 0.6% drop in December and tiny gains of 0.3% in January and 0.1% in February. The slight 0.1% rise in incomes in March followed a modest 0.2% rise in February and a 0.1% decline in January.

The 1.5% year-over-year increase in consumer prices was up from a 1.3% 12-month gain in February but still well below the Fed's target.

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