Americans spent less on consumer goods in March due to rising fuel and food costs. Gasoline prices rose 11 percent since this time last year. Across the board consumr spending has dipped; housing, auto sales, and large appliances have all been effected.

Recession fears have increased and the rising gasoline prices have been blamed for higher costs of groceries. “Spending is pretty sluggish,” said Kevin Logan, senior market economist at Dresdner Kleinwort in New York, who correctly forecast the sales figure less autos. “If you’re getting an inflationary increase in gasoline and food, that would mask the true weakness in consumer spending. This is consistent with recessionary conditions.”

(Source: Bloomberg)