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Consumer Spending Weak in April, More Evidence of Slow Recovery

1 year ago
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Take a couple of aspirins and get plenty of sleep, you'll feel better in the morning. That could be a prescription for the discouraging state of the U.S. economic recovery, which saw weak consumer spending in April and only a small advance in personal income, according to the Commerce Department .

Economists had hoped for a 0.3 percent lift in spending -- but it remained flat last month -- and a 0.5 percent gain in incomes, which instead rose only 0.4 percent, the Associated Press reported Friday. The personal savings rate climbed 3.6 percent -- a positive sign in good times but worrisome when the economy is in need of stimulation.

Economists fear growth is not robust enough to significantly push down the stubborn 9.9 percent unemployment rate, the AP said. On Thursday, the government revised downward overall first quarter economic growth by 0.2 percent to 3 percent.

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forrestoak

Lately, it seems like whenever a we have estimated numbers about the economy, we always seem to get a downgrade when the actual numbers come out. First quarter grew by 3.4%...the later we get, Well actually it only grew by 2.9%. This happens with job numbers as well. Too bad it doesn't happen with budget numbers. When was the last time the actual cost came back less than the projected cost for anything in the budget?

May 28 2010 at 10:36 AM Report abuse +10 rate up rate down Reply
1 reply to forrestoak's comment
jimwzdp

The U.S. Supreme Court building actually came in under budget. Pretty sad when that's a bragging right.

May 28 2010 at 12:03 PM Report abuse +8 rate up rate down Reply

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