Personal Spending, Incomes Up in April

U.S. consumer spending posted its smallest gain in six months in April, and a key measure of inflation moderated, the government said Friday.

Another report showed consumers losing confidence this month.

Personal spending rose 0.3% last month, the Commerce Department said. The figure was in line with forecasts.

More important for the economic outlook, incomes rose by 0.6%, the biggest gain since November. The increase suggested households might be able to keep spending in the months ahead, analysts said.

A key inflation indicator in the report came in weaker than expected, with a 0.1% rise.

Another report Friday showed consumer confidence declined in May for a second month in a row. The University of Michigan’s final survey of consumer confidence for May had its index falling to 90.2, its lowest point since October, from April’s final reading of 94.2.

“What’s affecting consumer sentiment is the geopolitical news, which is quite negative coming out of Iraq. But also the rise in oil prices is of concern to consumers as it affects their pocketbooks directly,” said Kevin Logan, economist at Dresdner Kleinwort Wasserstein.