WASHINGTON (AP) — Americans increased their spending by 0.5% in April, a slowdown after a massive gain in March which had been powered by distribution of billions of dollars in individual stimulus checks. Even with the slowdown from a 4.7% surge in spending in March, the April increase provided further evidence that consumers are driving a strengthening recovery from the pandemic recession. Friday’s report from the Commerce Department also showed that personal incomes, which provide the fuel for spending, declined 13.1% in April. But the drop in income was expected, having followed a record 20.9% income gain in March that reflected billions in one-time stimulus checks to most adults.
