Spending in the U.S. dropped for the first time in a year and income stag­nated according to the U.S Depart­ment of Commerce’s report yes­terday on the April economy — released even as con­sumer con­fi­dence num­bers hit a six-​​year high.

The report showed the first drop in spending since last May — a 0.2 per­cent slip that came after a strong first quarter, including a 
0.8 per­cent jump in spending in February.

The economy is in a bit of a soft patch,” said Alan Clayton-​​Matthews, an econ­o­mist at North­eastern Uni­ver­sity. “The spending cut­backs and seques­tra­tion are affecting house­hold dis­pos­able incomes.”

Still, according to the Thompson Reuters/​University of Michigan con­sumer sen­ti­ment index — which mea­sures how people feel about the economy and their own finances — con­sumers are more con­fi­dent than they have been since July 2007.

Read the article at The Boston Herald →