May 30, 2001
Consumers Spend More Than They Earn
Consumer spending in April outpaced income growth, the U.S. Commerce Department said in a report issued Tuesday.
According to the report, personal income grew at a seasonally adjusted 0.3% rate in April, down from the 0.5% pace set in March. However, when adjusted for inflation, the income growth was only 0.1%. Spending on goods and services grew at a faster rate, 0.4% in April, up from 0.2% in March.
The increase in spending also helped drop the personal saving rate from -0.6% in March to -0.7% in April.
- by Liz Smutko