Consumer spending is a key indicator of economic success and a major driver of the economy. It’s a primary determinant of economic performance and can lead to increased production of goods and services, higher GDP, and job creation. Consumer spending continues to climb, especially for lower-income households. Lower-income spending growth continues to be more than higher-income households. Earlier tax refunds tend to inflate those numbers, as people spend their tax return money. Total spending per household rose 1% year-over-year in April, following a rise of .3% rise in March.
The growth rate of real gross domestic product (GDP) is a key indicator of economic health and activity. As of April 25,2024, the US GDP was $28.28 trillion, which is a 5.49% increase from April of last year. When adjusted for inflation, the GDP increased at an annual rate of 1.6% in the first quarter of 2024, which is a decrease from 3.4% from fourth quarter of 2023. The increase in the first quarter was due to higher consumer spending.
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