WASHINGTON – U.S. consumers cut back on spending in April for the first time in a year. The setback came after a huge increase in the previous month and should not raise concerns about an expected spring rebound in the economy.
The Commerce Department says consumer spending fell 0.1 percent in April, reflecting reductions in purchases of durable goods such as autos and in services such as heating bills. The drop was the first in 12 months, but it followed a 1 percent surge in spending in March, which had been the biggest increase in more than four years.
Income rose 0.3 percent in April after a 0.5 percent March gain.
The overall economy shrank in the first quarter, but economists expect a strong rebound this quarter.