U.S. consumer spending falls by 0.2% in March

WASHINGTON, April 30 (Xinhua) -- U.S. consumer spending fell 0.2 percent in March, the first drop in three months, while income growth slipped for a second consecutive month, the Commerce Department reported Thursday.

The March drop followed gains of 1.1 percent in January and 0.4percent in February. The back-to-back increases came after consumer spending had posted six straight monthly declines as consumers slashed outlays in the face of a deepening recession.

Economists had been expecting a 0.1 percent decline for last month.

Personal income, the fuel for future spending, dropped by 0.3 percent in March, worse than the 0.2 percent dip that had been expected. Income rose by 0.1 percent in January and declined by 0.2 percent in February.

Americans' disposable personal income, or after-tax income, was flat in March, the same as the previous month.

But Americans were saving more. The personal saving rate, personal saving as a percentage of disposable personal income, increased to 4.2 percent last month from 4.0 percent in February.

Consumer spending, which accounts for two thirds of total economic activity, rose at an annual rate of 2.2 percent in the first quarter of this year after two consecutive quarters of declines.

However, many economists believe that consumer spending will dip back into negative territory in the current April-June period as the economy is still in a severe recession and the unemployment rate stands at 8.5 percent, the highest level since late 1983.

Survey: U.S. consumer confidence jumps in April

NEW YORK, April 28 (Xinhua) -- U.S. consumer confidence improved considerably in April, boosted by the hope that the worst may be over for the economy, according to a survey whose result was released on Tuesday.

The New York-based Conference Board said in a statement that its Consumer Confidence Index rose more than 12 points to 39.2, up from a revised 26.9 in March. The surprise jump easily passed economists' expectations for 29.5 and is the highest level since last November's 44.7.

The survey showed that consumers' short-term outlook of the economic conditions and job market improved substantially.

"Consumer Confidence rose in April to its highest reading in 2009, driven primarily by a significant improvement in the short-term outlook," Lynn Franco, director of the Conference Board Consumer Research Center, said in a statement. "The sharp increase in the Expectations Index suggests that consumers believe the economy is nearing a bottom, however, this Index still remains well below levels associated with strong economic growth."

The April jump in consumer confidence comes after a small increase in March, following a huge slide in February. The current reading remains well below the year-ago level of 62.8.

"The Present Situation Index posted a moderate gain, a sign that conditions have not deteriorated further, and may even moderately improve, in the second quarter," Franco said.

The market reacted positively to the survey result with Wall Street paring early losses.