US Consumer Spending Lower Than Expected

Despite higher food and energy prices, consumer spending in the U.S. rose less than forecast for the month of April. Purchases rose 0.4 percent after a revised 0.5 percent gain the prior month that was smaller than previously estimated, Commerce Department figures showed today in Washington.

“When you account for higher food and energy prices there’s barely anything left for consumers” to buy, said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “We need to see job growth pick up and we need to see commodity prices continue to cool.”

Source: Bloomberg

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