Washington, May 31:Unemployment worries saw consumers put a tight grip on their cash as they trimmed spending by 0.1% in April, the biggest cutback since the beginning of the year. The dip in spending represented a big pullback by consumers from March, when they ratcheted up spending by 0.8%, the commerce department reported on Friday.
April’s spending figure was weaker than economists’ expectations. They were forecasting a tiny rise of 0.1%.

Incomes of Americans, including wages, interest and government benefits, were flat in April — compared with a solid 0.4% increase in March — as the weak job market took a bite out of earnings. Even though April’s income reading was on target with economists’ projections, it is still a bit disheartening because income growth is a fuel to power spending down the road. Consumers are the main force behind the economy. However, some economists worry that the stagnant job market may make them extra cautious. That could mar the chances of an economic recovery.
The nation’s jobless rate jumped to 6% in April as businesses cut jobs for the third straight month. The economy has lost half a million jobs in the last three months, a decline usually associated with recessions. Bureau Report