Americans Boost Consumption More Slowly

U.S. consumer spending, which grew a revised 0.9% from January to February, increased 0.3% in March, the Dept. of Commerce says.

In the first quarter of this year, consumer spending rose 2.9% from the previous quarter the fastest pace in more than a year.

Household income, which advanced 0.3% in February, rose 0.4% in March. Economists say it's good news that income grew faster than consumption because the spending trend is more sustainable when consumers aren't increasing debt.

The inflation gauge tied to consumer spending edged up 0.2% in March from the month before. Year over year, the measure jumped 2.1%, remaining close to the Federal Reserve's 2% inflation target.