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US consumers boost spending 0.2 pct. in March despite higher taxes; income also up 0.2 pct.
WASHINGTON – Americans spent more in March and their income grew, the latest indication that consumers are shrugging off a tax increase.
The Commerce Department says consumer spending increased 0.2 per cent in March. That followed a 0.7 per cent jump the previous month and a 0.3 per cent gain in January.
Income increased 0.2 per cent last month, following a gain of 1.1 per cent in February. After-tax income also rose 0.2 per cent.
Higher incomes helped offset an increase in Social Security taxes that kicked in Jan. 1. On Friday, the government said consumer spending rose in the January-March quarter at the fastest pace in more than two years.
Spending on services drove the increase. One reason services were higher: Americans paid more to heat their homes during a unseasonably cold March.
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