<p>Consumers pulled back on spending in April for the first time in almost a year. According to a government report released Friday, consumer spending fell in April, disappointing economists who had forecast a rise.</p><p>Consumer spending fell 0.2 percent, the weakest reading since May last year, after edging up 0.1 percent in March, the Commerce Department said. Economists had expected a 0.1 percent gain in April.</p><p>Analysts worry that the reading could point to a slowdown in economic activity.</p><p>Consumer spending accounts for nearly two-thirds of U.S. economic activity, and was held down by weak demand for utilities and a drop in receipts at gasoline stations on the back of a fall in gasoline prices at the pump.</p><p>U.S. Personal Income remained unchanged at a seasonally adjusted 0.0%, the Bureau of Economic Analysis said in a report.</p><p>Economists had worried that tax hikes and spending cuts were going to weigh on consumer’s pocketbooks.</p><p>Separate data released Friday revealed that Consumer sentiment hit its strongest reading in nearly six years in May. The Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment rose to 84.5 from 76.4 in April.</p><p>The most surprising data this morning was the Chicago PMI reading that surprised analysts after surging to 58.7 in May from 49.0 last month. Economists were expecting a much smaller increase to 50.0. The surge indicates that regional manufacturing in the Midwest expanded at a moderate pace in May after contracting slightly in April.</p>
