Avery Shenfield

"There was a whole lot of spending going on in the first quarter -- much more than recognized amidst a lot of gloom on the overall outlook," said Avery Shenfield, senior economist at TD Bank.

Much of the spending was linked to the still booming U.S. housing market.

Economists expect consumers won't continue spending at the same pace, especially as the 400,000 manufacturing layoffs of the past four months begin to sink in.