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.

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