“U.S. consumer spending increased by the most in more than 9-1/2 years in March as households stepped up purchases of motor vehicles, but price pressures remained muted, with a key inflation measure posting its smallest annual gain in 14 months,” Lucia Mutikani reports for Reuters.
“The surge in consumer spending reported by the Commerce Department on Monday sets a stronger base for growth in consumption heading into the second quarter after it slowed sharply in the first three months of the year,” Mutikani reports. “Fed officials are scheduled to meet on Tuesday and Wednesday to assess the economy and deliberate on the future course of monetary policy. The U.S. central bank in March dropped forecasts for any interest rate increases this year, halting a three-year policy tightening campaign.”
“Consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged 0.9 percent. That was the biggest rise since August 2009,” Mutikani reports. “March’s surge in real consumer spending suggested an acceleration in consumption was likely in the second quarter. Consumer spending increased at a 1.2 percent annualized rate in the first quarter, the slowest in a year. The overall economy grew at a 3.2 percent rate last quarter… a strong labor market and still very high savings are seen underpinning spending. Wages rose 0.4 percent in March after advancing 0.3 percent in the prior month. Savings fell to $1.03 trillion in March from $1.16 trillion in February.”
Read more in the full article here.
MacDailyNews Take: Increased disposable personal income and strong consumer spending are always good news for companies who sell coveted goods and services like Apple Inc.
In Q119, the Americas accounted for 36.94% of Apple revenue, by far the largest country/region (Europe: 20.36%, Greater China: 13.17%, Japan: 6.91%, Rest of Asia Pacific: 6.93%).
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