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American consumers increased their spending by a record 8.2% in May, partly erasing record plunges the previous two months, against the backdrop of an economy that’s likely shrinking by its steepest pace on record this quarter.

U.S. consumer spending, which accounts for about two-thirds of the world’s largest economy, plunged in April by the most on record after the coronavirus pandemic halted purchases of all but the most essential goods and services.

WASHINGTON — Americans pulled back on their spending in January, even as their incomes surged, a sign the economy was growing modestly before the threat of coronavirus arose.

WASHINGTON — American consumers boosted their spending by just 0.1% in August, the smallest gain in six months, even as their incomes rose at a solid pace.

The U.S. economy grew at a modest pace through much of July and August, with companies remaining upbeat despite disruption caused by international trade disputes, a Federal Reserve survey found.

Consumer spending rose a healthy 0.3% in June, slightly below the strong gains of the past three months, while incomes turned in a solid 0.4% gain for the fourth straight month.

U.S. consumer spending in the first quarter was even weaker than previously reported on lower outlays for services while business investment was revised higher, leaving the pace of economic growth at a still-solid 3.1%.

The Commerce Department said May 31 that consumer spending increased 0.3% in April after a 1.1% surge in March that had been the largest increase in nearly a decade. Personal income growth, which had been lagging in recent months, jumped 0.5% in April.

U.S. consumer spending rebounded in March while the Federal Reserve’s preferred underlying inflation gauge eased to a one-year low, reinforcing the central bank’s patient stance on interest rates even as the economy’s main engine holds up.

U.S. consumer spending in January was short of projections while inflation eased, an early read on the economy in the first quarter that may add to concerns about the outlook.