US consumer spending falls for the first time in a year

US consumer spending fell in April, for the first time in nearly a year.

The Department of Commerce said consumer spending fell 0.2% in April.

Analysts had expected a rise of 0.1%, which was the change seen in March. Consumer spending accounts for about 70% of US economic activity.

Spending was held back by weaker demand for utilities and less money being spent on petrol, following a fall in the price of fuel. Tax increases may also have hit spending.

An increase in social security payments has reduced the take-home pay of workers.

A person earning $50,000 a year has about $1,000 less to spend a year because of the increase in the social security taxes. A household with two highly paid workers has up to $4,500 less.

Also, because petrol prices declined sharply in March and April, the amount of money consumers were spending at fuel stations fell.

Figures showed that household income was unchanged last month, after a 0.3% rise in March and 1.2% gain in February.