US consumer spending dipped slightly in April, the government said this afternoon in a report highlighting the tepid growth pace of the US economy.
The Commerce Department said personal spending fell by 0.1 per cent after an upwardly revised 0.8 per cent gain in March.
Personal income was unchanged in April, the first time since July 2002 that incomes have not posted a monthly gain.
The report renews worries that consumer spending, which accounts for about two-thirds of US economic activity, may be faltering. Robust spending, along with a vibrant housing market, have been among the economy's few areas of strength.
Wall Street analysts had expected incomes to post a flat reading in the month and spending to have gained 0.1 per cent.
The report also showed data that could stoke concerns about deflation, a general fall in prices usually accompanied by a severe slide in economic activity.
The price index for personal spending, an inflation measure closely watched by Federal Reserve officials, fell by 0.2 per cent in April. That was the largest decline since September 2001, when it slid by 0.5 per cent.
Excluding volatile food and energy prices, the index was up 0.1 per cent.
AFP