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  • U.S. consumer spending slips, income stagnates

    The Boston Herald - 06/01/2013

    Spending in the U.S. dropped for the first time in a year and income stagnated according to the U.S Department of Commerce’s report yesterday on the April economy — released even as consumer confidence numbers hit a six-year high.

    The report showed the first drop in spending since last May — a 0.2 percent slip that came after a strong first quarter, including a 
0.8 percent jump in spending in February.

    “The economy is in a bit of a soft patch,” said Alan Clayton-Matthews, an economist at Northeastern University. “The spending cutbacks and sequestration are affecting household disposable incomes.”

    Still, according to the Thompson Reuters/University of Michigan consumer sentiment index — which measures how people feel about the economy and their own finances — consumers are more confident than they have been since July 2007.