U.S. Economy: Consumer Spending Rises Less Than Forecast

Consumer purchases in the U.S. rose less than forecast in April as food and fuel prices climbed, and pending sales of existing houses plunged, showing the economy was struggling to strengthen at the start of the second quarter.

Household spending rose 0.4 percent after a revised 0.5 percent March gain that was smaller than previously estimated, Commerce Department figures showed today in Washington. The number of Americans signing contracts to buy previously owned homes fell 12 percent last month, the second-biggest drop in a decade’s worth of records.