US consumer spending grew slowly in March

Written By Unknown on Senin, 29 April 2013 | 21.29

US consumer spending grew slightly in March, the Commerce Department reports, in a fresh sign that higher payroll taxes and government spending cuts could be slowing economic growth.

Consumer spending grew by 0.2 per cent, or $US21.0 billion ($A20.5 billion), from February, down from the 0.7 per cent expansion in the January-February period.

Personal income grew by the same amount, 0.2 per cent, or $US30.9 billion, compared to 1.1 per cent the previous month.

The personal saving rate remained flat: Americans were saving a net 2.7 per cent of their disposable income.

On Friday the Commerce Department estimated overall economic growth in the first quarter of 2013 at 2.5 per cent, lower than economists expected.

Economists blamed the impact of the government's "sequester" spending cuts which came into effect at the beginning of March.


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