Consumer Confidence Falls in April, But Spending Was Higher in March

April 30, 2004 12:05 PM, EDT

U.S. consumers spent more in March, but their faith in the economy fell during April, a pair of reports released Friday said.

The Commerce Department said that personal spending rose 0.4% in March, building on a 0.5% boost in spending during February.

However, the University of Michigan's preliminary consumer sentiment reading for April fell to 93.2 from a preliminary reading of 96.5. Consumer confidence is a leading indicator of potential future spending.

The government said that home refinancing and tax refunds, which gave Americans more disposable income, bolstered personal spending.

Overall personal income rose at an annual rate of 5.6%, the strongest growth since the third quarter of 2000.

Consumer spending can help drive demand for transportation as trucks often haul consumer goods and factory materials.

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