American consumer spending did better than expected in March, increasing by 1.1 percent amid strong demand for services, according to the Commerce Department on April 29.
Economists are hopeful that the signs of positive consumer spending heading into the second quarter will offset fears of a recession, after the economy contracted in the first quarter.
Consumers are spending more on services like travel and dining. The rising cost of gasoline and food was offset by less spending on durable goods, which fell for the second month in a row, with fewer vehicle purchases and parts.
Energy prices dramatically rose 33.9 percent while food prices increased 9.2 percent, according to the Commerce Department.
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