Consumer spending rises as factory output surges

WASHINGTON (AP) — Retail sales rose in April for the seventh straight month, factory production surged and businesses restocked their shelves.

The trio of government reports today pointed to an economy that's improving modestly but steadily.

Consumers drove retail sales up 0.4 percent last month. The gain was less than the 2.1 percent growth in March. But that surge was boosted by an early Easter holiday and auto incentives.

Shoppers are closely watched because their spending accounts for 70 percent of economic activity. It rose in the first three months of this year at the fastest pace in three years, according to the Commerce Department report. As employers ramp up hiring, spending could rise further in coming months.