Consumer Spending Fell in March

Washington, DC, April 30, 2009--Consumer spending took a step back in March after two steps forward in January, government data showed.

Real consumer spending fell 0.2% in March after gaining 0.9% in January and 0.1% in February, the Commerce Department said Thursday.

After falling a 4% annual pace in the final six months of 2008, consumer spending rose 2.2% in the first quarter, the government reported Wednesday. But almost all the increase came in January, which leaves the first quarter ending on a very weak note.

Meanwhile, nominal incomes fell 0.3% in March as wages and salaries slid 0.5%.

Separately, the Labor Department said first-time claims for unemployment benefits fell last week by 14,000 to 631,000. The four-week average also fell to 637,250, a hopeful sign that layoffs may have peaked.