Consumer Spending Flat, Incomes Up in April

Washington, DC, May 28, 2010--Consumer spending was flat in April while incomes posted a tiny advance, according to the Commerce Department.

The flat spending level was the weakest showing in seven months. Economists had expected a 0.3 percent rise.

Personal incomes rose 0.4 percent, slightly off expectations.

More people are holding on to their money, the report noted. The savings rate rose 3.6 percent in April. The rate had fallen to 3.1 percent in March, the lowest reading since October 2008.

The unchanged level of spending came despite a 0.6 percent rise in March. It also was flat despite a 0.4 percent rise in April retail sales.

The rise in incomes followed a similar jump in March. A pickup in wages and salaries are being helped by increases in payroll employment.