US consumer spending slowed in March even as Americans saw a slight rise in income, official data showed Friday.Spending rose a seasonally adjusted 0.6 percent after an upwardly revised rise of 0.9 percent in February, the Commerce Department said.The increase was slightly better than the average analyst estimate of 0.5 percent increase in consumer spending, a key driver of the US economy.
WASHINGTON — A drop in government spending dragged more on the U.S. economy than initially thought in the first three months of the year, a sign of increasing pain from Washington’s austerity drive.
The U.S. economy expanded at a 2.4% annual rate during the period, down a tenth of a point from an initial estimate, according to revised figures from the Commerce Department released on Thursday. Analysts had forecast a 2.5% gain.
US consumer spending cooled in April under pressure from higher food and energy prices and as Americans saw little change in buying power, the Commerce Department reported Friday.Consumer spending rose 0.4 percent in April, slowing a notch from March's 0.5 percent gain, while personal income also rose 0.4 percent, the department said.
Americans increased their spending more slowly in March, raising questions that consumers could be worried about the economy. Spending increased just 0.3 percent after a 0.9 percent gain in February. Income grew 0.4 percent, a bit faster than February's 0.3 percent.» E-Mail This » Add to Del.icio.us