WASHINGTON -- Americans increased their spending more slowly inMarch, suggesting some are worried that their paychecks aren'tgrowing fast enough. The Commerce Department said Monday that consumer spending increased just 0.3 percent lastmonth after a 0.9 percent gain in February. Income grew 0.4 percent following a 0.3 percent gain in February.But after-tax income when adjusted for inflation increased 0.2percent in March. The gain followed two months of declines. Consumer spending, which accounts for 70 percent of economicgrowth, rose 2.9 percent in the January-March quarter -- thefastest pace in more than a year. The increase was a bright spot inan otherwise weak first quarter for economic growth. But Paul Dales , senior U.S. economist at Capital Economics , noted that stronger spending in January and February drove thequarterly increase. And consumers spent more while saving less,which suggests they cannot sustain their spending pace withoutbetter pay. "Real incomes will need to grow at a faster rate to preventconsumption growth from slowing," Dales said. He noted thatFriday's report on April hiring is a crucial sign of where theeconomy is headed. The government reported Friday that the overall economy grew at anannual rate of 2.2 percent in the January-March quarter. That'sdown from 3 percent annual growth in the October-December period.The weakness mainly reflected government budget-cutting and weakerbusiness investment. In March, consumers spent 0.9 percent more on non-durable goods,such as clothing. Spending on durable goods, such as cars andappliances, fell 0.3 percent. Spending on services such asutilities and rent was mostly flat. An inflation gauge tied to consumer spending rose a modest 0.2percent in March. Over the past 12 months, the index is up 2.1percent, just above the Federal Reserve's 2 percent inflationtarget Some economists worry consumers can't keep spending asfreely as they did in the first three months of this year withoutbigger pay raises. After-tax income rose just 0.6 percent in thefirst three months compared with a year earlier. That was thesmallest pay increase in two years. The savings rate edged up to 3.8 percent in March, after droppingto a 30-month low of 3.7 percent of after-tax income in February. A healthy job market could reinvigorate consumers. But the economycreated just 120,000 jobs -- half the pace of the previous threemonths. Economists predict employers added 173,000 jobs this month,slightly better than March's figures but below the pace fromDecember through February. One positive change since the winter: gas prices appear to havepeaked. That would give consumers more to spend elsewhere. The nationwide average for a gallon of regular gasoline stood at$3.83 on Friday, down eight cents from a month ago, according toAAA's fuel gauge report. The e-commerce company in China offers quality products such as Outdoor Led Flood Light , Frosted Candle Bulb, and more. For more , please visit E27 Led Candle Bulb today!
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