May 02, 2008	Friday	Rabi-us-Sani 25, 1429

WASHINGTON, May 1: US consumers spent more in March than in February, but much of the gain was due to higher-priced food, energy and services, government data showed on Thursday.

US consumer spending rose 0.4 per cent in March from the prior month, while household income climbed 0.3 per cent, the Commerce Department said.

The March spending increase was the strongest since January and double analysts’ consensus forecast of a 0.2 per cent gain. The income increase was slightly below market expectations of 0.4 per cent.

Consumer spending, the driver of growth in the world’s biggest economy, sharply accelerated from February’s meagre 0.1 per cent gain. Household income in February had climbed 0.5 per cent from January.

However, after adjusting for higher prices, real consumer spending was up 0.1 per cent compared with no change in the preceding month.—AFP