<Bt-3z32>Personal spending increases in US
WASHINGTON (Bloomberg) — Personal spending in the US rose in April and a measure of prices increased less than forecast, a sign American consumers will keep the economy growing this quarter without accelerating inflation.The 0.5 percent rise in spending followed a 0.4 percent increase in March that was greater than previously estimated, the Commerce Department said yesterday in Washington. The Federal Reserve's preferred measure of inflation rose 0.1 percent.
The numbers lend support to Fed Chairman Ben S. Bernanke's forecast that growth will pick up in the second half of the year, with inflation remaining a concern, economists said. A Commerce Department report yesterday showed consumer spending in the first quarter was stronger than the government estimated previously.
"The consumer is just not collapsing," Diane Swonk, chief economist at Mesirow Financial Inc. in Chicago, said before the report. "Consumer spending will not shoulder all the burden of growth going forward but it continues to be resilient."
A separate report showed employers in the US hired more workers than forecast last month, keeping the unemployment rate near a five-year low.
The 157,000 increase in employment in May followed an 80,000 gain in April, the Labour Department said yesterday in Washington. The jobless rate stayed at 4.5 percent.
