US consumers cut spending 0.2 pct. in April

WASHINGTON (AP) — Americans cut back on spending in April after their income failed to grow, a sign that economic growth may be slowing.

Consumer spending dropped a seasonally adjusted 0.2 percent in April, the Commerce Department said Friday. That was the first decline since last May. It followed a 0.1 percent increase in March and a 0.8 percent jump in February.

A drop in gas prices likely lowered overall spending. Adjusted for inflation, spending ticked up 0.1 percent last month. Still, that was the smallest gain since October.

Consumers also likely spent less to heat their homes last month, which may have reduced spending on utilities. April's weather was mild after an unusually cold March.

Income was unchanged last month, after a 0.3 percent rise in March and 1.2 percent gain in February. Wages and salaries barely grew, while government benefit payments fell.