U.S. consumer spending rose solidly in January and underlying inflation picked up by the most in four years, keeping Federal Reserve interest rate increases on the table this year.
The upbeat data on Friday added to reports on manufacturing and employment that have suggested economic growth picked up at the start of the year after slowing in the fourth quarter.
The economic growth outlook was further bolstered by steady consumer sentiment in February despite recent stock market turmoil.
The Commerce Department said consumer spending increased 0.5 percent, the largest gain since March, as households ramped up purchases of a range of goods and the return to normal winter temperatures boosted demand for heating.