A Drop in April Consumer Spending Weighs on Stocks

A range of economic reports demonstrated that warmer weather didn't translate into more shopping. Personal consumption fell 0.1% in April, including auto sales that declined after a seven year high in March. Consumers weren't helped by the higher prices as the price index was up 1.6% in April over last year. Rockwell Economist Peter Cardillo isn't worried about the weakness in these reports. He cites the increase in personal income, which rose 0.3%, as a reason for felling positive about the economy. He feels the second quarter will bounce back as consumers have more income to spend.