consumer spending

Powell noted that the economy has been growing faster than expected this year and that consumers have kept spending briskly.

The figures reinforced evidence that the economy is gripped by the worst downturn in decades.

The Commerce Department said that the spending plunge was accompanied by a sharp 2% drop in personal incomes.

For the year, the GDP grew by 2.3%, a sharp drop from 2.9% GDP growth in 2018.

They are forecasting growth of around 2% in the current quarter.

The big jump in consumer spending is encouraging because it suggests that the overall economy had solid momentum going into the April-June quarter.