U.S. March Consumer Spending Fell More Than Forecast

U.S. consumer spending declined more than forecast in March after a two-month spurt, ending an unexpectedly strong quarter on a soft note and signaling any economic recovery will be gradual.

Purchases decreased 0.2 percent after a 0.4 percent gain in February that was larger than previously estimated, the Commerce Department said today in Washington. Incomes fell for the fifth time in the last six months.

Mounting unemployment and falling home values remain challenges for consumers, suggesting the biggest part of the economy may falter again in the second quarter and prolong the recession. Still, low borrowing costs and government stimulus may boost demand in the second half of the year, easing the economic slump.

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- Posted: 2009-04-30 08:27:20

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