WASHINGTON – WASHINGTON (AP) — Consumer spending was stagnant in April, turning in the weakest performance in seven months, while incomes posted a tiny advance.
The Commerce Department says consumer spending was unchanged last month. Economists had expected a 0.3 percent rise. Personal incomes rose 0.4 percent, less than the 0.5 percent gain economists had forecast.
Consumer spending is closely watched because it accounts for 70 percent of total economic activity. The flat reading for April raises concerns about whether the recovery from the recession could slow in coming months if households cut back on purchases.