A report has shown that the level of factory activity in the US fell in April. The Institute for Supply Management said its index of national factory activity was unchanged in April from March at 48.6. Any figure below 50 means the sector shrank.
The report came after Commerce Department figures showed that US consumer spending rose 0.4% in March from February, while household income climbed 0.3%.
The March spending increase was the strongest since January and was bigger than analysts had expected. The income increase was slightly below market expectations.
Consumer spending, the driver of growth in the world's biggest economy, sharply accelerated from February's meagre 0.1% gain. Household income in February had climbed 0.5% from January.
An inflation gauge in the report, the personal consumption expenditures (PCE) index, showed consumer prices rose 0.3% in March, after 0.1% in February. The core PCE reading, which excludes volatile food and energy costs, rose 0.2% in March, after 0.1% in February. This exceeded expectations of a 0.1% rise.
