WASHINGTON (AP) — Americans cut back on spending in April after their income failed to grow, a sign economic growth may be slowing.
The Commerce Department says consumer spending dropped a seasonally adjusted 0.2 percent in April, the most since last May. That follows a 0.1 percent increase in March and a 0.8 percent jump in February.
Adjusted for inflation, spending ticked up 0.1 percent last month. A drop in gas prices likely lowered overall spending.
But income was unchanged last month, after a 0.3 percent rise in March and 1.2 percent gain in February.
The retrenchment in spending suggests consumers may be starting to feel the impact of higher taxes. The decrease comes after consumers boosted their spending from January through March at the fastest pace in two years.