WASHINGTON — Americans are starting to see some relief from higher gas prices, a change that could revive the economy in the months ahead.
Consumer prices were flat in April, largely because of a decline in gas prices. Lower prices at the pump may be combining with steady job growth to power more spending on big purchases.
Sales of autos, furniture and electronics all rose in April. And Americans spent more at restaurants and bars — generally a sign of confidence in the economy. “Consumer spending looks to have started the second quarter on a solid footing,” said Paul Ashworth, an economist at Capital Economics.
Despite the strength in key areas, overall retail sales increased just 0.1 percent last month, the Commerce Department said Tuesday. That modest gain followed two stronger months in February and March.
Recent job growth has contributed to higher consumer confidence. Employers have added 1 million jobs in the past five months, though the pace of gains has slowed recently.
2.2%
Economic growth in the first quarter, down from a 3 percent increase in the fourth of 2011
1.3%
Rise in average hourly earnings in the 12 months ending in April
