Consumer spending increases 0.9 in April
Inflation adjusted consumer spending rises 0.7
Core PCE price index gains 0.3; up 4.9 yearonyear
Goods trade deficit narrows 15.9 to 105.9 bln in April

WASHINGTON, May 27 Reuters U.S. consumer spending rose more than expected in April as households boosted purchases of goods and services, and the increase in inflation slowed, which could underpin economic growth in the second quarter amid rising fears of a recession.

The economy39;s nearterm prospects were also brightened by other data from the Commerce Department on Friday showing the goods trade deficit narrowed sharply last month. A record trade deficit caused a contraction in output in the first quarter.

The economy can always turn on a dime, but at this point in the economic cycle, consumers are still spending their hearts out, keeping the recessionary winds at bay, said Christopher Rupkey, chief economist at FWDBONDS in New York.

Consumer spending, which accounts for more than twothirds of U.S. economic activity, increased 0.9 last month. Data for March was revised higher to show outlays racing 1.4 instead of 1.1 as previously reported. The strength in spending is despite consumer sentiment being at its lowest level since 2011.

Goods spending increased a solid 0.8, driven by new motor vehicles, clothing, footwear, recreational goods as well as furnishings and household equipment. Demand for goods remains strong even as spending on services is picking up.

Services…