US consumer spending rises in March on higher prices

0 Comments | AFP, May, 2008

WASHINGTON (AFP) — US consumers spent more in March than in February, but much of the gain was due to higher-priced food, energy and services, government data showed Thursday.

US consumer spending rose 0.4 percent in March from the prior month, while household income climbed 0.3 percent, the Commerce Department said.

The March spending increase was the strongest since January and double analysts' consensus forecast of a 0.2 percent gain. The income increase was slightly below market expectations of 0.4 percent.

Consumer spending, the driver of growth in the world's biggest economy, sharply accelerated from February's meager 0.1 percent gain. Household income in February had climbed 0.5 percent from January.

However, after adjusting for higher prices,...