Gasoline prices dent consumer buying power in the u.s.

Buyers to the Christmas season, the Condotti Street in downtown Rome, December 21, 2009.

Credit: Reuters/Alessia PierdomenicoBy Mutikani Lucia

Washington | Friday April 29, 2011 2 pm

Washington (Reuters)-the United States consumers increased spending for the ninth straight month in March as they stretched to cover the higher costs for food, fuel, with inflation and its publication in the year gap, the biggest in 10 months.

Despite the rising cost of living Americans grew up a little more optimistic about the economy this month and even dial down their expectations for inflation range medium-long, another report Friday.

Consumers appear to do the higher costs one step forward, but may put to the test if gasoline prices above $ 4 a gallon at 15. The price of gasoline vehicles that use the standard bsolr rose 3.5 national $3.88 week until Monday at St.

"My guess is that we are not going to see continued increases in energy prices during the year. Consumers will continue to contribute to the expansion, although a secondary role, "said Richard DeKaser, Economist Parthenon Group in Boston.

Consumer spending, which drives 70 percent of the economy, rose 0.6 percent last month after advancing 0.6 percent in February, the Commerce Department said. But prices rose 0.4 percent in stiffness, to go out on top only 0.2 percent after adjusting for inflation.

While the prices of consumer goods have robbed of the equivalent power, they entered the second quarter with a little jump from outlook.

Thomson Reuters/University of Michigan consumer index rose 43.4 respond from 67.5 in March. Expectation inflation expectations in the coming year of the survey remained unchanged at 4.6 percent, but the inflation outlook for the 10-year-old five slipped 2.9 percent from 9.7 percent in March.

Works for the elevator to spend

Improving and strengthening the market confidence should support costs, even if gasoline prices remain at high levels, economists say.

"We are looking for should continue to grow in the second quarter, we will probably see an increase (expenses), quite similar to what we saw in the first quarter," said Daniel Silver, Economist at JPMorgan in New York.

Consumer spending growth slowed to an annual rate of the 2.7 percent in the first quarter after a rise of 4 percent in the final three months of 2010, the Government reported on Thursday.

This space, which took into account the data published on Friday, spending would slow down the economic grasp behind bagidol at the beginning of the year from the 1.8 extension to 3.1 percent in the last quarter of 2010.

Cooling production?

Third report on the activities of the plant are bamhoz Western country slowed this month, although it remained strong and I did a bit of data at the start of major economists who would pick up growth in the current quarter.

Economists said the tepid demand in the first quarter left the business with less need to build inventory.

"The need for new orders and production of beef until the inventory is reduced, and as a result, we see the factory sector is slow," said DeKaser.

"Production of twist came off earlier this year, still moving forward in a healthy clip."

Mixed economic reports had little effect in the financial markets. Caterpillar Inc., earnings strong, heavy-equipment maker in the world, Chevron fuel Corp., rest Dow Jones in the row for its best monthly performance since December.

The dollar fell to three-year low against a basket of currencies in monetary policy will remain accommodative stance of the Federation. Prices for u.s. government debt increased.

Caterpillar CEO Doug Oberhelman said he was positive on the outlook for the economy of the near-term function in, but that the budget for Washington to base sounder for growth.

"Instead of pointing fingers one another, Government (Obama), members of Congress need to work hand in hand to find solutions that put the u.s. economy for long-term strength," said Oberhelman.

Wage growth and

Expense report showed consumer prices up 1.8 percent from a year ago--the largest 12-month gain since May.

Core prices index, which strips out food and energy costs, rose only 0.1 percent in February, saving space this year at its 0.9%, touching above all time low of 0.7 percent hit in December.

Fed officials, see the index of the core close to assess the underlying price trends, said they didn't expect the food energy to light a lofty and inflation.

Revenues increased 0.5 percent last month after a 0.4 percent in February, but wages and salaries advanced only 0.3%. With unemployment at 8.8 percent in March, growing the salary bar helps to maintain prices.

A separate report showed wage increases from a tepid rate of 0.4% in the first quarter, have only 1.6 percent from a year ago.

(Editing by Andrea Ritchie , Kenneth Barry)

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