Americans increased their spending by 0.5% in April, a slowdown after a massive gain in March that had been powered by the distribution of billions of dollars in individual stimulus checks.

Even with the pullback 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, tumbled 13.1% in April. But the drop in income was expected, having followed a record 20.9% income gain in March that reflected the billions in one-time checks to most adults.

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In addition, the report showed that inflation by a measure preferred by the Federal Reserve surged a bigger-than-expected 3.6% for the 12 months ending in April. Excluding volatile food and energy, the so-called core increase was a still high 3.1%. Both figures are far above the Fed’s 2% target for inflation.

Read more at NEWSMAX.