A modest increase in US consumer spending last month signalled the world's largest economy may struggle to accelerate this quarter.
Consumer spending climbed 0.3pc last month, sharply down from the 0.9pc seen in February, according to the Commerce Department.
The smaller increase in March suggested to some economists that consumer spending may not prove as robust this quarter.
"The [first] quarter started off with a bang," said Lindsey Piegza, an economist at FTN Financial. "But as the quarter ended, so did the spending momentum".
Consumer spending was a bright spot for the world's largest economy in a first quarter in which overall growth slowed from the final three months of 2011.
With much of Europe in recession, the world is still looking to the US recovery to speed up this year. Among a blitz of data released on Monday, there was some encouragement for those who believe US growth will gain the traction that has eluded it since the financial crisis.
Americans' personal incomes rose 0.4pc last month, beating economists' forecasts. A recent easing in petrol prices may also encourage spending by consumers, who still account for about 70pc of the economy.
The mixed picture of the consumer that emerged from Monday is indicative of an economy that, though stronger than those in Europe, still faces headwinds.
Federal Reserve chairman Ben Bernanke said this month that the economy was not strong enough to declare victory. There was further evidence of that from the country's manufacturing sector, where a survey of activity in the Chicago area dropped to its lowest level since late 2009.
The decline in Institute for Supply Management index to 56.2 in April from 62.6 in March raised fears that manufacturing - one of the best performing parts of the economy in the past two years - may also be slowing.
telegraph.co.uk
Consumer spending climbed 0.3pc last month, sharply down from the 0.9pc seen in February, according to the Commerce Department.
The smaller increase in March suggested to some economists that consumer spending may not prove as robust this quarter.
"The [first] quarter started off with a bang," said Lindsey Piegza, an economist at FTN Financial. "But as the quarter ended, so did the spending momentum".
Consumer spending was a bright spot for the world's largest economy in a first quarter in which overall growth slowed from the final three months of 2011.
With much of Europe in recession, the world is still looking to the US recovery to speed up this year. Among a blitz of data released on Monday, there was some encouragement for those who believe US growth will gain the traction that has eluded it since the financial crisis.
Americans' personal incomes rose 0.4pc last month, beating economists' forecasts. A recent easing in petrol prices may also encourage spending by consumers, who still account for about 70pc of the economy.
The mixed picture of the consumer that emerged from Monday is indicative of an economy that, though stronger than those in Europe, still faces headwinds.
Federal Reserve chairman Ben Bernanke said this month that the economy was not strong enough to declare victory. There was further evidence of that from the country's manufacturing sector, where a survey of activity in the Chicago area dropped to its lowest level since late 2009.
The decline in Institute for Supply Management index to 56.2 in April from 62.6 in March raised fears that manufacturing - one of the best performing parts of the economy in the past two years - may also be slowing.
telegraph.co.uk
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