The following is an excerpt from cbsnews.com | June 1, 2012 |
(AP) WASHINGTON – Consumer spending edged up modestly in April but personal income growth was the slowest in five months, raising concerns about the ability of Americans to keep spending in the future.
Consumer spending increased 0.3 percent in April following a revised 0.2 percent gain in March, the Commerce Department said Friday.
Americans’ income grew 0.2 percent in April, the poorest showing since incomes fell 0.1 percent in November. The April gain was just half the 0.4 percent March rise.
Consumer spending accounts for 70 percent of economic activity. Economists hope consumers will keep spending to support further economic growth. But the concern is that incomes have been lagging in this sub-par recovery, meaning households have less to spend. The small April income gain will add to those worries.
Worries about income growth will likely increase in light of a separate report Friday showing that the nation created just 69,000 jobs in May, the fewest in a year. The unemployment rate rose to 8.2 percent from 8.1 percent in April, the first increase in 11 months. Weak job growth translates into weak income growth.
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