Consumer Spending Flat In April (TIF, ANF)

U.S. consumer spending was flat in April, the first time since September that spending did not increase, according to the Commerce Department. Analysts were looking for consumer spending to increase by 0.3 percent in April after a 0.6 percent rise in March. For the first quarter of 2010 consumer spending rose at a 3.5 percent annual rate, more than double the 1.5 percent increase during the fourth quarter of 2009. Real disposable income rose 0.5 percent in April, the largest increase since May 2009. The savings rate rose to 3.6 percent. Analysts expect strong spending in the second quarter as the labor market improves and tame inflation boosts spending power. An increase in consumer spending is helping retailers like Tiffany & Co. TIF and Abercrombie & Fitch ANF recover from the worst recession since the 1930s.