Personal consumption rose 3.6% in Q1 versus 1.6% in Q4, a very positive sign going forward.
The surge in Q4 was led by inventories. This quarter, consumer spending took the lead (at least in the fist look at the data). That is a much more sustainable mix.
Inflation is nonexistent, the data shows, giving the Fed ample room to keep rates low. The core personal consumption expenditures index rose a scant 0.6%, the lowest in over 50 years.