SPENDING FALLS: Consumer spending dropped a seasonally adjusted 0.2 percent in April, the Commerce Department said Friday. That was the first decline since last May. A drop in gas prices likely lowered overall spending
INCOME FLAT: Income was unchanged last month, after a 0.3 percent rise in March. Wages and salaries barely grew, while government benefit payments fell.
TEMPORARY HITCH?: The retrenchment in spending indicates consumers may be starting to feel the impact of higher taxes. But a separate report Friday showed consumer confidence rose to a six-year high in May, suggesting the decline in spending will be temporary.