US consumer spending slipped 0.1 per cent in April, first decline in a year after March gain

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FILE - In this Friday, Nov. 23, 2012 file photo, a cashier rings up a cash sale at a Sears store, in Las Vegas. The Commerce Department reports how much consumers spent and earned in April, and The University of Michigan issues its index of consumer sentiment for May, on Friday, May 30, 2014. (AP Photo/Julie Jacobson, File)

WASHINGTON – U.S. consumers cut back on spending in April for the first time in a year. The setback came after a huge increase in the previous month and should not raise concerns about an expected spring rebound in the economy.

The Commerce Department says consumer spending fell 0.1 per cent in April, reflecting reductions in purchases of durable goods such as autos and in services such as heating bills. The drop was the first in 12 months, but it followed a 1 per cent surge in spending in March, which had been the biggest increase in more than four years.

Income rose 0.3 per cent in April after a 0.5 per cent March gain.

The overall economy shrank in the first quarter, but economists expect a strong rebound this quarter.

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