Consumer spending in the United States looks to have climbed significantly in April, with households increasing their purchases at online shops and spending more at restaurants and bars, indicating resilience in the face of growing headwinds to the economy.
According to Reuters, data released on Tuesday showed that factory output increased last month, adding to the economy’s improved prospects.
In May, homebuilder morale reached a 10-month high. The data added to April’s strong employment growth, indicating that the economy was reviving following a slowdown in February and March.
Spending is being supported by robust wage gains as a result of a tight job market, but rising inflation and interest rates are making consumers more selective and price cautious.
According to the Commerce Department, retail sales excluding autos, gasoline, building materials, and food services increased 0.7% last month.
Ariel Ben Solomon is the Growth and Strategy manager at Ecomhunt. He is the host of the Ecomhunt Podcast. Can be followed on Twitter at @ArielBenSolomon