U.S. consumers boosted spending only modestly last month and a gauge of Midwestern business activity fell sharply in April, suggesting the economy entered the second quarter with less steam.
The Commerce Department said on Monday consumer spending rose 0.3 percent last month, just below the median forecast in a Reuters poll.
When taking into account inflation, which has been fed in recent months by higher gasoline prices, spending barely rose, advancing just 0.1 percent.
“The spending number is an indication that the higher gas prices we saw last month are taking their toll,” said Todd Schoenberger, managing principal at the Black Bay Group in New York.
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