Accessibility links

Breaking News

US Consumer Spending Drops

U.S. consumers cut spending in April, as rising unemployment and other worries prompted them to boost savings.

Monday's report from the Commerce Department showed a 0.1 percent decrease, the second straight month that spending fell.

Economists track consumer spending closely because consumer demand drives two-thirds of U.S. economic activity.

A separate report from a business group, the Institute for Supply Management, said the U.S. manufacturing sector continued shrinking, though it declined at a slower pace.

Another government report on construction was more upbeat, showing spending for building rose 0.8 percent in April, the strongest gain since last August.

Some information for this report was provided by AFP, AP and Reuters.