US spending slows while income rises

Okay this is from CNNMoney news

US consumers slowed in March while income rose at a faster pace, US government said. The personal spending increased 0.3% in the month down from 0.9% jump in spending the month before. That much weaker than 0.5% gain in spending forecast by economists surveyed by Income increased a little faster, rising 0.4% which was improvement from the 0.2% gain the previous month. It was the first time since December that income growth outpaced spending increases, as consumers dipped into savings the previous two months in order to deal with rising prices such as increases in gasoline prices.
Inflation moderated in March and consumers can increase their saving. From the report, the savings rate edged up to 3.8% from 3.7% in February.

“The consumer is still struggling to boost savings,” said Steven Ricchiuto, chief economist of Mizuho Securities USA, in a note to clients Monday. He said the much weaker growth in spending shows that “consumers can’t buy enough cars to get the economy back to a sustainable growth trajectory.”

Consumer spending is an important for nation’s economy. The earlier reports show that the pace of hiring slowed significantly in March and on April jobs gains come in much weaker that expected.

Reference :- Finance Yahoo

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