Consumer Spending Slows to 0.3% in March

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.

SPENDING GROWTH SLOWS: Americans increased their spending more slowly in March. U.S. consumer spending rose 0.3 percent, one-third of the 0.9 percent February gain.

US consumer spending slowed in March but still rose by more than predicted, figures show, providing an unexpected boost to the economy.

Consumers hardly increased spending in March and income growth also softened, reinforcing a bevy of reports that indicate the economy slowed as the spring began.

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.

American consumers increased their spending in December at a slower pace, while their income grew sharply and claims for unemployment benefits rose.

Consumer spending unexpectedly fell in June to post the first decline in nearly two years as incomes barely rose, suggesting economic growth could remain subdued in the third quarter.