Americans spent more than they earned in April, the government said today, in a report showing that consumer spending remained strong even as the US economy has weakened.
The US Commerce Department reported personal income grew at a seasonally adjusted 0.3 per cent annual rate in April, down from the 0.5 per cent pace seen in March. But spending on goods and services grew at a faster 0.4 per cent pace in the month, up from March's 0.2 per cent rate.
However, when adjusted for inflation, incomes grew by a scant 0.1 per cent pace while spending expanded by 0.2 per cent.
Even so, the numbers were completely in line with what Wall Street analysts had been expecting.