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US consumers spending less

American consumer spending saw a slight fall in April, according to figures from the Bureau of Economic Analysis (BEA).

The Bureau says personal consumption expenditure dropped by 0.1% to $5.4 billion (£3.3 billion) for the month, compared with a 0.3% fall in March.

Purchases of cars and auto parts dropped most dramatically, while sales of durable goods also fell, although purchases of services rose 0.2%.

Meanwhile, personal income increased by 0.5% to $58.2 billion in April, and real disposable personal income jumped 1.1%, compared to a 0.1% rise the previous month.

The BEA says this boost to income can be attributed partly to this year’s American Recovery and Reinvestment Act, which has seen the government cut personal tax rates and increase social benefit payments.

The country’s savings rate, calculated as disposable personal income less personal outlays, is on the increase. In April, personal saving as a percentage of disposable personal income was 5.7%, compared with 4.5% in March.

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