You are here

US consumer spending tumble in April

doc7asa4lsygea18zdfa53z_doc75dknaey26tzs3pqmn7.jpg
US consumer spending dropped by a record in April as the Covid-19 pandemic undercut demand, buttressing expectations that the economy could contract in the second quarter at its steepest pace since the Great Depression.

[WASHINGTON] US consumer spending dropped by a record in April as the Covid-19 pandemic undercut demand, buttressing expectations that the economy could contract in the second quarter at its steepest pace since the Great Depression.

The Commerce Department said on Friday consumer spending, which accounts for more than two-thirds of US economic activity, plunged 13.6 per cent last month. That was the biggest drop since the government started tracking series in 1959, and followed a 6.9 per cent tumble in March.

Economists polled by Reuters had forecast consumer spending plummeting 12.6 per cent in April.

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes