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Consumer spending surges in March; inflation cools

A woman carries shopping bags in Manhattan in New York City

A woman carries shopping bags in Manhattan in New York City on Feb. 25.

WASHINGTON � U.S. consumer spending increased solidly in March as households boosted purchases of motor vehicles to avoid higher prices and shortages due to tariffs, but that did little to change economists' views that the economy had shifted into lower gear.

Consumer spending, which accounts for more than two-thirds of economic activity, surged 0.7% last month after an upwardly revised 0.5% gain in February, the Commerce Department's Bureau of Economic Analysis said on Wednesday. Economists polled by Reuters had forecast consumer spending would rise 0.5% after a previously reported 0.4% increase in February.





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