Two key economic indicators, consumer spending and personal income growth, both slowed in April as signs of an economic slowdown continue to accumulate.
The Commerce Department’s Bureau of Economic Analysis released figures this morning that showed growth of personal income shrinking to 0.2% in April, from 0.4% in March, and consumer spending decreasing from a growth rate of 0.1% in March to no growth at all in April.
The bureau also released figures for prices as measured by personal consumption expenditures, which grew by 0.2% in April, down from 0.3% in March.
Additionally, real disposable income remained unchanged.
Purchases of durable goods decreased 0.2% in April, compared with a decrease of 1.3% in March.
The downturn in consumer spending on nondurable goods was in large part attributed to decreased spending on gas and energy, as consumers reacted to high prices by cutting the use of these commodities.
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