US consumer spending rises more than expected in March

The US Commerce Department said consumer spending, which accounts for more than two-thirds of US economic activity, rose 1.1% in March from 0.6% in February after an upward revision, spending on services increased by 1.1% and spending on goods increased by 1.2%. The personal consumption expenditures (PCE) price index rose 0.9% in March, the largest increase since September 2005 after rising 0.5% in February, and on an annual basis the PCE price index rose 6.6% in March, the largest increase since January 1982 . The data showed that the core PCE price index, which excludes food and energy components, rose by 0.3% in March, and on an annual basis, the core PCE price index rose by 5.2% in March.