Consumer Spending Is Weakest In 7 Months

Flat reading for April raises concerns about whether recovery will stall

WASHINGTON - Consumer spending was stagnant in April while incomes posted a tiny advance, signs that the economic recovery could slow.

The Commerce Department said Friday that consumer spending was unchanged last month, the weakest showing in seven months. Economists had expected a 0.3 percent rise. Personal incomes rose 0.4 percent, less than the 0.5 percent gain economists had forecast.

More people are holding on to their money, the report noted. The savings rate rose 3.6 percent in April. The rate had fallen to 3.1 percent in March, the lowest reading since October 2008.

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